1995 (10) TMI 212

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....broken iron hoops, obsolete machinery, coal-ash, etc., were exigible to tax?" 2.. Facts lie in a narrow compass. The applicant is a public limited company incorporated under the Companies Act. It carries on the business of manufacture of cloth and yarn and is registered as a dealer under the State Sales Tax Act and the Central Sales Tax Act. It was assessed to sales tax by the Assistant Commissioner of Sales Tax. The assessing authority while assessing the assessee for the years 1966, 1970, 1972 and 1973 found as a fact that it made sales of miscellaneous items which constituted sale of discarded machineries, colours, chemicals, iron hoops and other materials. The assessee contended that these sales were not made in the course of busines....

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....., were exigible to tax. 5.. Prior to April 15, 1965, there was no definition of term "business" in the M.P. General Sales Tax Act. The definition was inserted in section 2(bb) of the Act as under: "'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." Similarly the definition of the term....

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....idence of life or activity. In course of time, items of stores would become unserviceable and as such discarded items, as particularised, would be required to be disposed of by sale. The assessee held that such sales should be termed as "casual" and be not treated as sales in its course of business. In our view, such sales are not casual, but usual and should appropriately be covered by section 2(bb)(ii) of the M.P. General Sales Tax Act and section 2(aa)(ii) of the Central Sales Tax Act as being "transactions" in connection with or incidental or ancillary to trade, commerce, manufacture, adventure or concern as indicated by inclusive definition given vide section 2(bb)(i) or section 2(aa)(i) as extracted above. 9.. In [1984] 55 STC 194 ....