1978 (6) TMI 160

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....s realised from sales in the respondent's canteen aggregating Rs. 1,67,946.35 as also the proceeds of casual sales of block and discarded goods had not been included in the gross turnover. The respondent claimed that in law the said amounts did not form part of the taxable turnover. The Commercial Tax Officer rejected such contentions, included the said amounts in the turnover and assessed sales tax accordingly. Being aggrieved thereby, the respondent preferred an appeal to the Assist ant Commissioner of Commercial Taxes. Following the judgment of the Supreme Court in Deputy Commercial Tax Officer, Saidapet, Madras v. Enfield India Ltd. Cooperative Canteen Ltd.[1968] 21 S.T.C. 317 (S.C.)., the Assistant Commissioner held that the proceed....

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....dered to be running a business in terms of its memorandum. The revision application of the respondent was allowed. On an application of the Commissioner of Sales Tax under section 21(1) of the said Act, the following questions have been referred for the opinion of this Court as questions of law arising out of the order of the Tribunal: "(1) Whether or not, in the facts of the case, this Tribunal was justified in law in holding that canteen sales and sales of old surplus and discarded materials effected by the respondent-company prior to the insertion of the definition of "business" on 16th November, 1967, were not exigible to tax under the Bengal Finance (Sales Tax) Act, 1941, as amended by an Ordinance of 1967, since repealed and ....

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....nd items sold included goods of great variety, which were disposed of with the help of a widespread organisation after frequent advertisements. The only submission made on behalf of the sales tax authorities was that, after the amendment of the statute, whereby the definition of the word "business" was widened, sales effected in a canteen as also sales of surplus and discarded materials would come within the ambit of the taxable transactions. In support of this contention, a decision of the Supreme Court in State of Tamil Nadu v. Burmah Shell Oil Storage and Distributing Co. of India Ltd.[1973] 31 S.T.C. 426 (S.C.). was cited, where the Supreme Court construed the effect of a corresponding amended definition in the Madras General Sales Tax ....