Ancillary sale of business assets was taxable where boats and a jeep were integrally connected with the assessee's operations.

Sale proceeds from motor boats and a motor jeep used in the assessee's sea-food business were treated as part of taxable turnover because the transactions were sufficiently connected with the business. The Kerala General Sales Tax Act definition of "business" was read broadly to include activities incidental or ancillary to the main business. Applying that principle, sale of assets integrally linked to business operations was held exigible to tax, and the Tribunal's view on taxability was upheld.

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Issues: Whether the sale proceeds of motor boats and a motor jeep used in the assessee's business were liable to be included in taxable turnover as sales incidental or ancillary to the business carried on by the assessee.

Analysis: The assessee was engaged in the business of processing and sale of sea foods, and the boats and jeep were used in connection with that business. The definition of "business" under section 2(vi) of the Kerala General Sales Tax Act was treated as wide enough to cover transactions connected with or ancillary to the main business. Applying the settled principle that sale of assets used in the business can form part of taxable turnover when the sale is integrally connected with the business operations, the Tribunal's view that the sale proceeds were exigible to tax was upheld.

Conclusion: The sale of the boats and jeep was held to be incidental or ancillary to the assessee's business and therefore taxable.

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