TMI Blog1964 (4) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... y SHAH, J. -The respondents who are registered as dealers under the Hyderabad General Sales Tax Act, 1950, carry on the business of tanning hides and skins and of selling the tanned skins in the town of Hyderabad. For the purposes of their business the respondents purchase undressed hides and skins and also tanning bark and other materials required in their tannery. For the assessment year 1954-55, the Sales Tax Officer, Circle IV, Hyderabad, found that the total turnover of the respondents was Rs. 5,70,417-12-4 (O.S.) in respect of the hides, skins, wool and tanning bark. The respondents disputed their liability to pay tax on Rs. 61,431-14-9 (O.S.) included in the turn- over contending that this amount represented the price paid for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which goods are either bought by or sold by a dealer, whether for cash or for deferred payment or other valuable consideration. By section 4 a tax at the rate of three pies in the rupee in I.G. currency on so much of the turnover for the year as is attributable to transactions in goods other than exempted goods is imposed. Rule 5(1) provides that save as provided in sub-rule (2) the turnover of a dealer for the purpose of the rules shall be the amounts for which goods are sold by the dealer. Rule 5(2) provides that in the case of certain commodities the turnover of a dealer for the purpose of the rules shall be the amount for which the goods are bought by the dealer. Those commodities are: (a) Groundnut (shelled or unshelled). (b) B ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e object of making profit. To regard an activity as business there must be a course of dealings, either actually continued or contemplated to be continued with a profit- motive, and not for sport or pleasure. But to be a dealer a person need not follow the activity of buying, selling and supplying the same commodity. Mere buying for personal consumption, i.e., without a profit-motive, will not make a person dealer within the meaning of the Act, but a person who consumes a commodity bought by him in the course of his trade, or use in manufacturing another commodity for sale, would be regarded as a dealer. The Legislature has not made sale of the very article bought by a person a condition for treating him as a dealer: the definition merely r ..... X X X X Extracts X X X X X X X X Extracts X X X X
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