Retrospective sales tax amendment expands dealer and goods definitions to tax repeated government auction sales of forest produce.

A retrospective amendment to the Himachal Pradesh General Sales Tax Act expanded the definitions of "business", "dealer" and "goods" by deeming the changes always to have been in force. On that language, Government selling forest produce at repeated auctions could be treated as carrying on business, and the forest department fell within the statutory definition of dealer. Trees agreed to be severed under a contract of sale, and timber when fallen, felled or agreed to be felled, were included within the taxable subject matter. Earlier authorities were distinguished because they turned on narrower definitions. The auction sales of forest trees were therefore liable to sales tax.

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Issues: Whether the retrospective amendment to the Himachal Pradesh General Sales Tax Act, 1968 brought the forest department within the definition of "dealer" so as to render the auction sale of forest trees liable to sales tax.

Analysis: The amended definition of "business" was given retrospective effect by the Legislature by the express language that the amendments "shall always be deemed to have been made". The substituted definition of "dealer" included a person carrying on business whether regularly or otherwise, and specifically covered Government where it buys, sells, supplies or distributes goods for consideration. The amended definition of "goods" also included trees agreed to be severed under a contract of sale, and the definition of "timber" extended to trees when fallen, felled, or agreed to be felled. The court distinguished earlier authorities relied on by the respondent because those cases proceeded on different statutory definitions, particularly where "business" was not defined or the concept of "dealer" was narrower. On the amended language, repeated auctioning of forest produce twice every year amounted to carrying on business, and the forest department was covered by the statutory definition.

Conclusion: The appellants were dealers carrying on business in timber within the amended Act, and the demand for sales tax was valid. The writ petition was liable to be dismissed.

Ratio Decidendi: Where a sales tax statute is retrospectively amended to expand the definitions of "business", "dealer" and "goods", repeated auction sales of forest produce by the Government can constitute taxable business even if the transactions are not frequent in the ordinary commercial sense.

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