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1957 (8) TMI 17

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....rabad General Sales Tax Act (hereinafter referred to as "the Act"). Before the Commissioner of Sales Tax, objection was taken on behalf of the Club that the supply of refreshments, etc., by the Club to its members, did not constitute sale and that therefore the Government had no jurisdiction or power to levy such tax. In two of the above applications, the Club seeks the issue of a writ of certiorari to quash the orders of the Commissioner of Sales Tax and in the other two applications, it seeks the issue of a writ of mandamus directing the Government to forbear from levying and collecting sales tax on the value of the refreshments, etc., supplied by the Club to its members. The question for consideration is whether the supplies made by the....

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....ion. The important requirement under the Act is that the sale must be in the course of trade or business; the expression "in the course of trade or business" makes it clear that the transaction must be commercial in its nature; in other words, it must be a business carried on for some pecuniary gain. The expression "dealer" which is defined as meaning persons or associations engaged in the business of buying, selling or supplying goods, also underlines the fact that the transaction must be of a commercial nature. A business is a trade or profession at which one works regularly and business is ordinarily for profit. A perusal of the constitution of the Secunderabad Club and its by- laws shows that it is an association of persons, each of wh....

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....one, etc. Each permanent member pays the Club, besides the entrance fee and the monthly subscription, such charges or price for amenities, services and supplies and their use, as the committee of the Club may fix from time to time. There is no provision for payment of any dividend or bonus to the members of the Club except in the event of the Club being liquidated. The learned Government Pleader has contended that the Club has been making profits on the supplies made by it to its members of the articles from its store. The fact that the Club made a profit in any particular year does not make any difference. The real criterion is whether it is doing business with a view to make a profit. Profit may be incidental but the Club is not doing b....