1976 (9) TMI 154

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....of the export of sea-foods made by him. He utilised that licence by importing paper and paper boards and sold the same to Basanth Paper House, Madras. The turnover with reference to this transaction was Rs. 49,358.57 and sales tax was assessed at 21 per cent thereof. The dealer preferred an appeal to the Appellate Assistant Commissioner and the Appellate Assistant Commissioner dismissed the appeal. When the respondent preferred a further appeal to the Sales Tax Appellate Tribunal, the Tribunal allowed the appeal. The Tribunal held that the late Kurwath Damodaran being a dealer in sea-foods cannot have any intention to carry on business in paper and paper boards and he had to sell such goods as he obtained under an import licence and that be....

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....business' includes- (i) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern; and (ii) any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern." The term "dealer" is defined in section 2(g) as follows: " 'dealer' means any person who carries on the business of buying, selling, supplying or distributing goods, directly or otherwise, whether for cash, or for deferred payment, or for commission....

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....the nature of trade, commerce or manufacture. But the second part of this definition refers to any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern; the word "such" referring back to the trade, commerce or manufacture or any adventure or concern mentioned in the first part. In this case, the import licence obtained by the dealer was a direct result of export of sea-foods and the sale of paper and paper boards so imported was thus intimately connected with his business in sea-foods. The Tribunal was certainly wrong in stating that the late Kurwath Damodaran, being a dealer in sea-foods, cannot have any intention to carry on business in paper and paper boards. As a matter o....