Regular sale of dry cows as part of business activity was held to fall within taxable turnover under sales tax law

Regular and systematic sale of unserviceable dry cows by a dairy business was treated as an activity in the course of business, not an isolated or casual disposal. The frequency, regularity and volume of the transactions, together with the substantial annual proceeds, showed that the assessee was dealing in such sales as part of maintaining and replenishing its productive stock. On that basis, the proceeds were held to form part of the taxable turnover under the sales tax law, and the assessee was regarded as a dealer for sales tax purposes.

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Issues: Whether the proceeds from the sale of dry cows by a dairy business formed part of its taxable turnover under the Sales Tax Act.

Analysis: The sales were not isolated or casual. The assessee regularly and systematically sold unserviceable cattle as part of maintaining and replenishing its productive stock, and the annual proceeds were substantial. The decisive test was whether the sales were an activity in the course of the assessee's business. On the facts, the frequency, regularity and volume of the transactions showed that the assessee was dealing in the sale of cattle as part of its business, so it fell within the definition of dealer for sales tax purposes.

Conclusion: The sales proceeds of dry cows were taxable and were rightly included in the turnover; the assessee's challenge failed.

Ratio Decidendi: Sales of goods regularly and systematically made as an activity in the course of a dealer's business, even if incidental to the main business, form part of taxable turnover under the sales tax law.

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