TaxTMI 
TaxTMI 
2012 (2) TMI 459
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....inema theatre and he sells food articles, snacks and beverages. He is a dealer registered under the provisions of the Act. He has opted for composition scheme with effect from May 1, 2006 and the same has been granted by the authorities. At the time of audit of books under section 39, the assessing authority found that during November 2006, the assessee has effected sale of certain equipments other than the food and beverages. The assessee had furnished debit notes issued on November 25, 2006 to the tune of Rs. 1,06,612. The goods sold are used equipments, viz., metal detector, water coolers and lockers. They were not reflected in the VAT return filed by the assessee. Therefore, the assessing authority issued a show-cause notice dated Janua....
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....(3) on the ground that there was a failure to declare the impugned turnover in the return. The revisional authority directed the assessing authority to levy penalty from the date of filing the return till the date of reassessment order. Aggrieved by the aforesaid order, the assessee is before this court. 3. Apart from other grounds, the learned counsel for the assessee assails the impugned order on the ground that the assessee was not in the business of purchase and sale of used equipments, viz., metal detectors, water coolers and lockers. Therefore, it was a one-time sale of discarded goods and as such he was not liable to pay tax under the Act. Though this point was not urged before the lower authorities, this being purely a question o....
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....deration in this appeal is whether he is liable to pay any tax under the Act on the sale of those three items. 6. This court had an occasion to consider a some what identical issue in the case of Kwality Biscuits (P.) Limited v. State of Karnataka reported in [2012] 53 VST 66 (Karn); [2011] ILR 339 (Karn). That was a case where the assessee was a dealer under the Act carrying on the business of manufacture and sale of biscuits and confectionery, wheat products, jams, jellies and creams. When the assessee sold the said business, he has also sold the intellectual property owned by him. The question was whether the consideration received for the sale of intellectual property was liable to tax. After referring to the definitions of "dealer",....
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.... must ordinarily be entered into with a profit-motive. 'During the course of business' postulates a continuous exercise of an activity. It also connotes some real, substantial and systematic or organised course of activity or conduct set with a purpose. In taxing statutes, it is used in the sense of an whole time occupation or profession of a person which requires continuous attention and labour. The expression 'carrying on business' requires something more than mere selling or buying. It is not merely the act of selling or buying makes a person dealer but the object of the person who carries on the activity is important to attract levy of sales tax. 'Sale' means every transfer of the property in goods by one person ....