Sale of calendars for consideration was taxable turnover, and a local branch office fell within business and dealer definitions.

Supply of calendars to dealers for fixed consideration constituted a sale and the receipts formed taxable turnover under the Tamil Nadu General Sales Tax Act, even if the payment covered only part of the cost. The court treated business under the Act as not requiring profit motive, and held that incidental calendar supplies supported by records at the Madras liaison office fell within that concept. It also held that a local branch or office with a fixed place of business and business connection with the head office could qualify as a dealer in the State. The assessment was therefore restored and the calendar supplies were held taxable for the relevant year.

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Issues: (i) Whether the supply of calendars to dealers in Tamil Nadu constituted a sale giving rise to taxable turnover under the Tamil Nadu General Sales Tax Act; (ii) Whether the assessee was carrying on business in Tamil Nadu within the meaning of the Act; (iii) Whether the assessee was a dealer within Tamil Nadu for the purpose of tax liability.

Issue (i): Whether the supply of calendars to dealers in Tamil Nadu constituted a sale giving rise to taxable turnover under the Tamil Nadu General Sales Tax Act.

Analysis: The requisition forms showed that the dealers placed orders for specified quantities at a fixed price per calendar and made payment by demand draft or cash. Even on the footing that only part of the cost was paid by the customers, the transaction still involved money consideration. The earlier decision relied on by the assessee was distinguished because there the calendars were supplied free of cost and the charges were only for printing and allied expenses, whereas here the calendars themselves were sold for consideration.

Conclusion: The supply of calendars amounted to a sale and the amount represented taxable turnover. This issue was decided against the assessee and in favour of the Revenue.

Issue (ii): Whether the assessee was carrying on business in Tamil Nadu within the meaning of the Act.

Analysis: Business under the Act does not require profit motive or actual profit, and even a solitary or incidental transaction may amount to business. The calendar supplies were part of the assessee's commercial activity, though incidental to its main business, and the Madras liaison office maintained records relating to those supplies. The absence of profit from the calendar transactions did not exclude them from the statutory concept of business.

Conclusion: The assessee was carrying on business in Tamil Nadu. This issue was decided against the assessee and in favour of the Revenue.

Issue (iii): Whether the assessee was a dealer within Tamil Nadu for the purpose of tax liability.

Analysis: The Act treated a local branch of a company situated outside the State as a dealer. The Madras office was not a separate entity from the head office and had a fixed place of business in the State. The maintenance of registers at Madras and the business connection with the head office supported the conclusion that the assessee fell within the statutory definition of dealer.

Conclusion: The assessee was a dealer within Tamil Nadu. This issue was decided against the assessee and in favour of the Revenue.

Final Conclusion: The Tribunal's view was set aside and the assessment as restored by the first appellate authority was upheld, resulting in taxability of the calendar supplies for the relevant assessment year.

Ratio Decidendi: A supply of goods for money consideration constitutes a sale and taxable turnover even if the consideration covers only part of the cost, and a local branch office carrying on such activity may fall within the statutory concepts of business and dealer.

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