Statutory canteen supplies treated as taxable sales despite no-profit operation and employee welfare purpose.

After the amendment to the definition of "dealer" in the U.P. Trade Tax Act, supplies of foodstuff from a statutory canteen maintained for employees and run on a no-profit basis were treated as taxable sales when made against sale price. The fact that the canteen was established under the Factories Act for employee welfare did not exclude liability to trade tax. On that basis, the canteen turnover remained assessable and the challenge to the Tribunal's order failed.

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Issues: Whether the supply of foodstuff by a statutory canteen run for employees, on a no-profit basis, amounted to a sale liable to tax under the U.P. Trade Tax Act, 1948.

Analysis: The revisions arose from assessment under section 11 of the U.P. Trade Tax Act, 1948 for supplies made in a canteen maintained for employees under section 46 of the Factories Act, 1948. The decisive question was governed by the amended definition of "dealer" in section 2(aa) of the U.P. Trade Tax Act, 1948 after the U.P. Taxation Laws Amendment Act, 1975. The supply of foodstuff against sale price from the statutory canteen was treated as a taxable sale, and the fact that the canteen was run on a no-profit basis did not exclude taxability.

Conclusion: The canteen's supply of foodstuff to employees was liable to trade tax, and the revisions were rejected.

Final Conclusion: The assessment of tax on the canteen turnover was sustained, and the challenge to the Tribunal's order failed.

Ratio Decidendi: After the amendment to the definition of "dealer", supplies made from a statutory canteen against sale price constitute taxable sales notwithstanding that the canteen is maintained for employees and run on a no-profit basis.

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