TMI Blog1984 (4) TMI 265X X X X Extracts X X X X X X X X Extracts X X X X ..... al before the Sales Tax Appellate Tribunal. Before the Tribunal the assessee's main contention was that it is not a dealer and that the sales which were subjected to tax were not incidental or ancillary to the transport operations carried on by the assessee. It was also contended that their transactions were similar to those of the Andhra Pradesh Road Transport Corporation which has been held by the High Court of Andhra Pradesh as not a dealer in Andhra Pradesh State Road Transport Corporation v. Commercial Tax Officer [1971] 27 STC 42. The Tribunal, after considering the assessee's contention and after referring to the said decision of the Andhra Pradesh High Court relied on by the assessee, held that the assessee is not liable to tax in r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rums (condemned) 3,583.39 16. Unclaimed articles 22.25 17. Second sales of radios and transistors 4,146.00 18. Canteen sales 83,795.01 19. Sales of old unserviceable buses 92,799.00 20. Machineries transferred to Cheran Engineering Corporation Private Ltd. 7,31,915.04 ------------Total turnover 11,94,003.04 DEDUCTIONS ALLOWED: Second sales of radios and transistors 4,146.00 Canteen sales 83,395.61 ------------- 87,941.61 ------------- Taxable turnover 11,06,061.00 ------------- This said turnover relating to the sales of scrap items was brought to charge by the assessing authorities on the basis of the decision of the Supreme Court in Burmah Shell's case [1973] 31 STC 426 (SC). The Tribunal, relying on the deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also takes in a Central or State Government or any of their departments, and therefore, the Nothern Railway, jodhpur, which is run by the Central Government should be taken to be a dealer and the sale of unserviceable articles by it should be taken to fall within the expression "business " as amended by Act 9 of 1965 amending section 2 of the Rajasthan Sales Tax Act, 1954. In State of Tamil Nadu v. Binny Ltd. [1982] 49 STC 17 (SC) the Supreme Court reiterated the principle laid down in Burmah Shell's case [1973] 31 STC 426 (SC). In that case the activity of selling provisions to the workmen of the assessee carrying on business of manufacture and sale of textiles in the stores maintained by it was held incidental to the business of manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to such sales was held to be not taxable on the ground that the Port Trust had not effected the sales in the course of a business activity or with a profit-motive, and therefore, it was not taxable. The Court observed that the Port Trust is a statutory body constituted by the Madras Port Trust Act, 1905 and though it is subject to certain control by the Central Government under the provisions of that Act, it cannot be said to be a department of the Central Government and therefore, the Port Trust cannot be treated as a dealer, unless it carries on the business of buying and selling. In that case the decision of the Andhra Pradesh High Court in Andhra Pradesh State Road Transport Corporation v. Commercial Tax Officer [1971] 27 STC 42 was re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evote its time and attention for the purpose of having the transactions of disposal of spares and scrap and therefore, the transaction relating to disposal of scrap (and) new parts which were no more necessary for the business of the assessee did not constitute business and the assessee could not be treated as a dealer in respect of such transactions. The question is whether the Tribunal is right in holding that the assessee is not a dealer and therefore its ancillary transaction of sale of scrap and unnecessary materials could be held to be not taxable. As already pointed out in District Controller of Stores v. Assistant Commercial Taxation Officer [1976] 37 STC 423 (SC) the Supreme Court has held that the Railways whose main object is t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C) we hold that the assessee is a dealer under section 2(g) of the Tamil Nadu General Sales Tax Act and therefore its transactions of sales of unserviceable or excessive material are liable to be taxed, as per the decision of the Supreme Court in Burmah Shell's case [1973] 31 STC 426 (SC). The learned counsel for the assessee then contends that even assuming that the sales of unserviceable and scrap materials are liable to be taxed as held by us, still the assessing authority was not justified in assessing the sum of Rs. 7,31,915.15 representing the value of the machineries transferred to Cheran Engineering Corporation Private Ltd. by the assessee. The learned counsel contends that if part of the business is transferred the same is not li ..... X X X X Extracts X X X X X X X X Extracts X X X X
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