1959 (7) TMI 45

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.... of manufacturing cotton textiles and yarn in the town of Ahmedabad. The assessees have a factory with a spinning and weaving plant. The assessees applied for registration under the Sales Tax Act for sale of the goods manufactured by them and in that application they stated that they were carrying on the business of selling yarn, cloth, cotton, waste stores etc., and accordingly the assessees were....

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....ste and that accordingly the sales of cotton and cotton waste were liable to be taxed?" The application submitted by the assessees for registration and the registration certificate issued to them may not be decisive of the question whether the assessees are dealers in cotton or cotton waste. But it appears from the facts found by the Tribunal that the assessees from time to time sold cotton which ....

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....and cloth, a subsidiary product resulted. This product was normally sold. In the circumstances, an intention to carry on business of selling the subsidiary product as a part or an incident of the business of the assessees may readily be inferred and the transaction of sale may be regarded as an activity in the course of the business of the assessees. If that be the true position, the assessees mus....