1961 (7) TMI 67

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....for determination is, whether the petitioners who are growers of rubber in their estate and who collect and convert latex into rubber sheets and sell them, are dealers within the meaning of the Act. Under section 3(1)(a) of the Act, sales tax is payable only by a dealer and under section 2(d) a "dealer" is any person who carries on the business of buying or selling goods. If a person who grows trees and sells the produce therefrom, is by such sale alone a dealer, there is no point in having defined a "dealer", as one carrying on the business of selling. The short question is, whether the petitioners can be said to carry on the business of selling, when they collect latex from rubber trees grown by them, convert it into rubber sheets and sel....

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....similar views on this aspect of the case. The Andhra Pradesh High Court held likewise, in the Pithapuram Taluk Tabacco, Cigars and Soda Merchants' Union v. State of Andhra Pradesh[1958] 9 S.T.C. 723; A.I.R. 1958 A.P. 558. These decisions were rendered on the content of the word "dealer" in the definition in the concerned enactments, which is practically on the same terms as in section 2(d) of the Act, and not on the nature of the produce sold, whether it is agricultural or nonagricultural, as defined. Chagla, C.J., in The State of Bombay v. The Ahmedabad Education Society[1956] 7 S.T.C. 497. propounded a test, which may be useful in a case like this. He observed that, "..............the activity, although it may be serious, although it may ....

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....ed at page 759 of the report: "The proviso leaves the main portion of the definition intact and it only says that certain things shall be excluded from a person's turnover. The main portion of the definition, however, shows that 'turnover' only refers to the turnover of a dealer and not of an agriculturistTherefore, the proviso deals with a person who is both an agriculturist and a dealer and it excludes the proceeds of the sale by him of his own agricultural produce from his turnover as a dealer in goods." 4.. I therefore come to the conclusion, that the mere sale by a person of rubber sheets produced by conversion of latex collected from rubber trees grown by him, is not sufficient to constitute him a dealer. But if, for example, in ad....