TaxTMI 
TaxTMI 
1981 (4) TMI 260
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.... tax imposed on the purchases of building materials by M/s. Synthetics Ltd., Ujjain?" 3.. Facts as stated by the Tribunal/Board of Revenue and admitted before us are as follows: The assessment periods involved in these references are 25th October, 1970, to 31st March, 1971, and 1st April, 1971, to 30th June, 1972. The assessee, M/s. Synthetics Ltd., Ujjain, is a registered dealer engaged in the business of manufacture of synthetic yarn. The assessee started construction of the factory for manufacture of synthetic yarn during the assessment periods in question. Production of synthetic yarn actually commenced on 1st October, 1972, i.e., after the assessment period ending on 30th June, 1972. There was no manufacturing activity during the peri....
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....n the present case had purchased the building materials for construction of its factory "in the course of its business". 8.. Section 2(bb) defines "business" as follows: "(i) Any trade, commerce, 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 gain or profit accrues from such trade, commerce, manufacture, adventure or concern and irrespective of volume, frequency, continuity or regularity of such trade, commerce, manufacture, adventure or concern; and (ii) Any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture....
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....before commencement of the business could not be considered as purchases "in the course of business". 11.. The learned standing counsel laid great emphasis on the definition of business as amended vide Act No. 16 of 1965 with effect from 15th April, 1965. His contention was that under clause (ii) of section 2(bb) of the Act any transaction in connection with or incidental or ancillary to such trade, commerce, manufacture, etc., partook the character of business and invited levy of purchase tax under section 7 of the Act. The business of the assessee was manufacture of synthetic yarn. Any transaction in connection with or incidental or ancillary to the manufacture of synthetic yarn would certainly be a transaction covered by clause (ii) of ....