https://www.taxtmi.com/caselaws?id=100722 Members' clubs are not liable to sales tax on refreshments and other supplies to members unless the transaction involves a legal transfer of property in goods for consideration. The governing test under entry 54 of List II is the existence of a sale within the meaning of the Sale of Goods Act, 1930; where the club merely acts as an agent or conduit for members, no sale arises. On the facts described, the clubs rendered amenities through common management and common funds rather than trading as sellers to outsiders, so the deeming provisions in the sales tax law did not create taxability. The supplies were therefore not exigible to sales tax and the clubs were not dealers for those supplies. en-us Thu, 12 Feb 1970 00:00:00 +0530 Mon, 14 Jul 2025 11:57:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=100722 Members' clubs are not liable to sales tax on refreshments and other supplies to members unless the transaction involves a legal transfer of property in goods for consideration. The governing test under entry 54 of List II is the existence of a sale within the meaning of the Sale of Goods Act, 1930; where the club merely acts as an agent or conduit for members, no sale arises. On the facts described, the clubs rendered amenities through common management and common funds rather than trading as sellers to outsiders, so the deeming provisions in the sales tax law did not create taxability. The supplies were therefore not exigible to sales tax and the clubs were not dealers for those supplies. Case-Laws VAT / Sales Tax Thu, 12 Feb 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=100722