Sales tax on supplies to members upheld after Article 366(29A) expanded the concept of sale.

Article 366(29A) enlarged the concept of sale to include supply of goods by an unincorporated association to its members for valuable consideration, making such transactions taxable where the sales tax law so provides. Registration under the societies law does not by itself amount to incorporation, so the association remained an unincorporated body for tax purposes. Even if treated as incorporated, supplies by incorporated bodies to members are not immune from sales tax. The pre-amendment mutuality principle could not override the post-amendment statutory levy, and an Article 14 challenge based on an erroneous benefit to another entity was rejected.

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Issues: Whether the supply of goods by the association to its members for consideration was a taxable sale under the sales tax law, and whether the association's status as a registered society prevented it from being treated as an unincorporated association for the purpose of taxability.

Analysis: The constitutional amendment by clause (29A) of article 366 enlarged the concept of sale and specifically brought within its scope the supply of goods by an unincorporated association to its members for valuable consideration. The association was held to be an unincorporated body, since registration under the societies legislation did not by itself amount to incorporation. Even on the assumption that it was incorporated, the Court held that sales by incorporated bodies to members are not immune from sales tax. The earlier mutuality-based rule applied before the constitutional amendment could not defeat the statutory levy after the amendment. The plea of discrimination based on an erroneous benefit given to another entity was rejected, because Article 14 cannot be invoked to perpetuate an illegality.

Conclusion: The supply of goods by the association to its members for consideration was taxable, and the challenge to the assessment failed.

Ratio Decidendi: After the introduction of article 366(29A), supply of goods by an association to its members for valuable consideration is exigible to sales tax where the statute so provides, and registration of a society does not by itself confer incorporation or tax immunity.

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