1967 (4) TMI 180

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....see's objection to bring to tax this part of the turnover was overruled by the revenue. But the Tribunal considered that the assessee is not a dealer in respect of the turnover and will not be liable to tax in respect of it. Section 2 of the Madras General Sales Tax Act, 1959, contains definitions. There is an inclusive definition of "business". It says that the expression includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern. A dealer is defined in relation to the business he carries on by buying and selling among other things. "Turnover" for the purpose of the Act means the aggr....

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....efect appears to have been rectified by Madras Act 15 of 1964. Under that Act for any activity to be "business" it is not necessary that it should be with a motive to make gain or profit and there should be any profit accrued from trade or commerce. It is this aspect of the matter that was under consideration in Southern Railway Employees' Workshop Canteen v. Deputy Commercial Tax Officer, Tiruchirapalli[1965] 16 S.T.C. 187. It is there held that the definition as it occurs in Madras Act 15 of 1964 is within the competence of the State Legislature, as the expression "sale of goods" In the relevant entry enabling the State to levy taxes on sales has been used in the sense defined in the Sale of Goods Act. But the question whether a transacti....