Amended definition of business under sales tax law covers post-amendment sales despite prior business closure.

The amended definition of "business" in section 2(5A) of the Bombay Sales Tax Act, 1959 covered transactions connected with, or incidental or ancillary to, the commencement or closure of trade, commerce or manufacture. Taxability depended on the sale as the material event, not on when the dealer closed the business. Sales effected after the retrospective amendment came into force were therefore taxable under the law then applicable, and the prior closure of the business before 1 July 1981 did not exclude them from the amended definition. The issue was answered in favour of the Revenue.

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Issues: Whether the amended definition of "business" in section 2(5A) of the Bombay Sales Tax Act, 1959 applies to sales effected after the amendment where the assessee had closed its business before the amended provision came into force.

Analysis: The amended definition of "business" expressly brought within its scope transactions connected with, or incidental or ancillary to, the commencement or closure of trade, commerce, manufacture or similar activity. Tax under the Act is leviable on sales made by a dealer, and the material event is the sale, not the closure of the business. Once the sales took place after the retrospective amendment had come into force, their taxability had to be determined with reference to the law then applicable. The date of closure of the business was held to be irrelevant for this purpose, and the fact that the business had closed before July 1, 1981 did not exclude the sales from the amended definition.

Conclusion: The amended definition applied to sales effected after its commencement, even if the business had closed before July 1, 1981, and the question was answered in favour of the Revenue.

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