Statutory auction sales by a Port Trust do not make it a dealer for sales tax registration purposes.

A Port Trust selling unclaimed, uncleared, scrap or unserviceable goods while performing statutory functions under the Major Port Trusts Act does not carry on business in the commercial sense required by the Tamil Nadu General Sales Tax Act. Because those auction sales were incidental to statutory duties and not undertaken as a trader, broker, commission agent or other mercantile agent, the Port Trust did not satisfy the definition of "dealer" under section 2(g), even after amendment. It was therefore not liable to register as a dealer or to furnish the auction-sale particulars sought by the notice, and the notice was quashed.

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Issues: Whether the Port Trust, while conducting auction sales of unclaimed or uncleared goods in the exercise of its statutory functions, could be treated as a dealer under the Tamil Nadu General Sales Tax Act and compelled to register and furnish particulars of such sales.

Analysis: The definition of "dealer" under section 2(g) of the Tamil Nadu General Sales Tax Act, 1959 requires carrying on business of buying, selling, supplying or distributing goods. The definition of "business" under section 2(d) is wide, but it still contemplates trade, commerce, manufacture, or an adventure in the nature of trade or commerce. Earlier decisions had already held that the Port Trust, constituted under the Major Port Trusts Act, does not carry on a commercial venture when it sells unclaimed goods in discharge of statutory duties and to recover dues. The amendment to section 2(g) did not alter the essential character of the Port Trust's activity, because the auction sales were not undertaken as a trader, broker, commission agent, auctioneer, or other mercantile agent on a commercial basis. The services and functions performed under the Major Port Trusts Act remained statutory, and the sale of scrap or unserviceable goods incidental to those functions did not amount to business activity.

Conclusion: The Port Trust is not a dealer and is not liable to be registered or compelled to furnish the auction-sale details sought by the notice.

Final Conclusion: The writ appeal succeeded, the writ petition was allowed, and the impugned notice was quashed.

Ratio Decidendi: An entity performing sales only in the course of statutory duties, without carrying on a commercial venture or business in the nature of trade or commerce, is not a dealer for sales tax purposes.

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