Incidental sale of scrap by a transport corporation was not business, so it was not a dealer for sales tax.

Sale of scrapped vehicles, old tyres, tubes, tender forms and other unserviceable material by a road transport corporation was held not to constitute "business" under the Act. The corporation's statutory object was efficient and economical transport, and disposal of discarded material was only incidental to that function, not an independent commercial venture. The Court applied its earlier decision on the same corporation and distinguished the railway scrap authorities on their different statutory setting and commercial context. As the department failed to show the volume, frequency, continuity or regularity needed to prove an intention to trade in scrap, the corporation was not a "dealer" and the sales were not liable to sales tax.

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Issues: Whether the sale of scrapped vehicles, old tyres, tubes, tender forms and other unserviceable material by the corporation constituted "business" so as to make it a "dealer" liable to sales tax.

Analysis: The corporation was constituted to provide an efficient and economical road transport service and its main activity was not trade in scrap or unserviceable goods. The Court followed the earlier decision directly concerning the same corporation, which had held that disposal of scrap arising in the course of its statutory transport functions was not a business activity. The reliance placed on the railway scrap cases was distinguished because, on the facts, those decisions involved materially different statutory objects and commercial setting. The Court held that the department had not shown any volume, frequency, continuity or regularity of scrap sales sufficient to establish an intention to carry on business in such goods. The sales of discarded material were only incidental to the primary statutory activity and did not amount to an independent commercial venture.

Conclusion: The corporation was not carrying on "business" within the meaning of the Act and was not a "dealer"; the sale of scrap and unserviceable material was not exigible to sales tax.

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