1961 (11) TMI 48

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....e us is the Electricity Department Canteen, Mount Road, Madras, and the question raised is whether the sales turnover of this canteen for the year 1954-55 is within the ambit of the Madras General Sales Tax Act. The canteen consists of about 500 members with a share capital of Rs. 2,500. It is stated that the object and purpose of this canteen is mainly to serve the members of the canteen with lun....

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....horities and in fact it is not now controverted before us. Learned counsel for the petitioner submitted that there was no profit motive on the part of the canteen when it catered to outside persons. The Tribunal has drawn the inference that there must have been a profit motive because in the year of assessment, the canteen earned a gross profit of Rs. 4,035-10-0 and a net profit of Rs. 2,210-15....

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....rance of the objects of the society they gave a contract to a contractor for construction of buildings for colleges, residential quarters for the staff and hostels for students. The surplus brick or building material which was left after the completion of the contract work was sold by the society at cost price to other societies. The question for consideration was whether this constituted a sale a....

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....ithout the society making any profit whatsoever." That was a case where there was a complete absence of any profit motive because what was sold was really the surplus stock and that was for the cost price. We are unable to see how that decision can help the petitioner to advance the contention in this case that there was no profit motive on the part of the canteen when it sold tiffin and lunch and....