TaxTMI 
TaxTMI 
1981 (1) TMI 229
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....rior to 1st April, 1976?" 2.. Facts: (i) W.P. No. 7025 of 1975: Coal is one of the important materials which the railway administration purchases during every year for being used as fuel for the purpose of running the locomotive engines. After the coal is burnt as fuel in the railway engines, the cinder and ash resulting therefrom are dropped from the engines. Such cinder and ash dropped from the engines get accumulated at the station and in the railway workshops. The cinder and ash so discarded by the railway engines are waste material and of no use for the railway administration. This has got to be removed at great expense for the purpose of maintaining efficient running of the railways and safety of railway tracks. Therefore, the railwa....
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.... under section 12(3) of the Act proposing to determine the total taxable turnover at Rs. 5,53,250 realised from the auction sales of scrap material. This petition is presented by the petitioner questioning the legality of the said notice. 3.. Sri G. Dayananda, the learned counsel appearing for the railway department, contended that the sale of cinder and scrap material by the railways was not in the course of its business and, therefore, the sale price realised by the sale of such waste and unwanted materials resulting from the operation of the railways is not exigible to tax under the provisions of the Act. In support of this submission he relied on the decisions of the Supreme Court in State of Gujarat v. Raipur Manufacturing Company Ltd....
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....r manuconcern in the nature of trade, or facture or any adventure or concern in commerce, with or without profitthe nature of trade, commerce or manumotive in such trade, commerce, facture, whether or not such trade, adventure or concern. 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; * * * * (k) 'dealer' means any person who (k) 'dealer' means any person who carries on the business of buying, carries on the business of buying, selling, supplying or distributing ....
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.....C. 1 (S.C.); A.I.R. 1967 S.C. 1066. A.I.R. 1973 S.C. 1045. are in pari materia with the definitions of the words "business" and "dealer" contained in the Act prior to 1st April, 1976. The relevant portion of the judgment is contained in para 6 and para 9 which read as follows: "........An attempt to realize price by sale of surplus unserviceable or discarded goods does not necessarily lead to an inference that business is intended to be carried on in those goods, and the fact that unserviceable goods are sold and not stored so that badly needed space is available for the business of the assessee also does not lead to the inference that business is intended to be carried on in selling those goods. * * * ...A person who sells goods which ....