Taxability of tender forms and waste paper turns on whether sale is part of business or incidental to it.

Receipts from supplying tender forms were not taxable under the Bombay Sales Tax Act, 1959 because the assessee was not in the business of selling tender forms, and the supply was neither connected with nor incidental or ancillary to its electricity business; the amount could not form part of taxable turnover. Sales of the assessee's publications and waste papers were also not taxable, as those items were covered by prior binding decisions applying the same result. The reference was answered against the revenue on the decided questions, and the remaining question was treated as academic.

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Issues: (i) Whether the sales of tender forms by the assessee were taxable under the Bombay Sales Tax Act, 1959. (ii) Whether the sales of the assessee's publications and waste papers were taxable.

Issue (i): Whether the sales of tender forms by the assessee were taxable under the Bombay Sales Tax Act, 1959.

Analysis: The tender forms were supplied only to persons intending to submit tenders for contracts with the assessee and were required to be submitted in a prescribed form. The assessee was engaged in generation and distribution of electricity, and it did not carry on the business of buying or selling tender forms. The supply of tender forms was neither connected with nor incidental or ancillary to the assessee's business. The amount received for such supply could not, therefore, form part of the taxable turnover.

Conclusion: The levy of tax on the sales of tender forms was not justified and the issue is answered in favour of the assessee.

Issue (ii): Whether the sales of the assessee's publications and waste papers were taxable.

Analysis: The controversy on these items stood covered by prior binding decisions holding that such disposals were not taxable in the circumstances considered. Following those decisions, no contrary view was warranted on these questions.

Conclusion: The levy of tax on the sales of the assessee's publications and waste papers was not justified and the issue is answered in favour of the assessee.

Final Conclusion: The reference was answered against the revenue on all decided questions, while the remaining question was left unanswered as academic.

Ratio Decidendi: A receipt from supply of forms or similar items is not taxable as sales turnover unless the activity amounts to carrying on the business of selling those items or is incidental or ancillary to the assessee's business.

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