2007 (4) TMI 649

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.... amounts to sale during the course of a business so as to attract levy of tax under the M. P. Vanijyik Kar Adhiniyam, 1994 (hereinafter referred to "the Act"). Petitioner is assailing the order dated January 24, 2004 passed by the Additional Commissioner of Commercial Tax, Indore, in the revision. By the order impugned, while partly allowing the revision, the Additional Commissioner did not accept contention of the petitioner and upheld the levy of tax on the sale of movable assets effected during the assessment period from April 1, 1997 to March 31, 1998. Petitioner is an incorporated limited company and a registered dealer under the Act. It was engaged in the business of manufacture and sale of copper coated steel tubes; conde....

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....f India (P) Limited v. State of Tamil Nadu [1982] 51 STC 278 (Mad), C.S.T., M.P. v. Dhirajlal & Co. [1985] Cur. TJ 560 (MP), Deputy Commissioner (C.T.) v. Cheran Transport Corporation Limited [1985] 59 STC 95 (Mad) and Coromandal Fertilisers Limited v. State of A. P. [1999] 112 STC 1 (AP) [FB]. Per contra, learned Additional Advocate-General placed reliance on the decisions in MPSRTC v. C.S.T. [1995] 21 Cur. TJ 124 (MP) and State of Orissa v. Orissa Road Transport Co. Ltd. [1997] 107 STC 204 (SC); [1997] 30 VKN 516. After hearing learned counsel at length, this court is of the view that both petitions deserve to be allowed for the reasons stated below. There are three stages in the imposition of a tax. In the words of Lord Dunedin, in Whit....

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....uot;dealer" in the Act. Section 5 of the Act is the charging section. It enjoins upon every dealer covered by the charging section, to pay the tax under the Act on the taxable turnover. Expression "dealer" is defined in clause (h) of section 2 of the Act. Perusal of the definition would show that a person is a dealer within the meaning of the Act, when he carries on the business of buying or selling of goods for consideration paid or payable in future. What is required is that sale or purchase must take place during the course of business of buying or selling in view of definition of "Dealer" in clause (h) of section 2 of the Act. "During the course of business" postulates a continuous exercise of an activ....