Post-closure sale of business assets was held outside taxable turnover under the sales tax law.

Sales of raw materials, stores and old machinery made after closure of a dealer's business were not treated as part of taxable business turnover under the Bengal Finance (Sales Tax) Act, 1941. The Tribunal reasoned that the statutory definition of business extends only to transactions connected with, or ancillary or incidental to, trade, commerce, manufacture or other commercial activity. Once the business had closed, later asset and stock sales could not be linked to an ongoing business activity and therefore fell outside the dealer's taxable turnover. The sales were held not exigible to tax.

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Issues: Whether sales of raw materials, stores and old machinery effected after closure of the dealer's business were exigible to tax under the Bengal Finance (Sales Tax) Act, 1941.

Analysis: The definition of business under the Act extends to transactions connected with, or ancillary or incidental to, trade, commerce, manufacture or other commercial activity. Where the business itself had already closed, subsequent sales of raw materials, stores and old machinery could not be treated as transactions in connection with, or ancillary or incidental to, that closed business. Such sales therefore did not form part of the dealer's taxable business turnover.

Conclusion: The reference was answered in the affirmative and the sales were held not exigible to tax.

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