1976 (2) TMI 155 - HC - VAT and Sales Tax

Summary

Issues involved: Sales tax assessments for the assessment years 1963-64 to 1968-69 in respect of transactions in a canteen run by a cooperative society registered under the Madras Co-operative Societies Act, 1932.

Sales Tax Liability: The society contended it was not taxable under the Tamil Nadu General Sales Tax Act, 1959, as it was neither a dealer nor doing any business, and its transactions did not amount to sales. The Tribunal found the society only supplied tiffin and refreshments to its bona fide members, leading to the cancellation of assessments. The revenue argued there were sales to non-members, but the Tribunal's factual finding was upheld, stating there were no sales to non-members.

Interpretation of Sales: Referring to legal precedents, the Court analyzed whether the society's transactions constituted sales u/s the Tamil Nadu General Sales Tax Act, 1959. Citing a Supreme Court decision, it was established that if there was no transfer of property, there was no sale exigible to tax. The Court applied this precedent and concluded that there was no sale of refreshments by the society, absolving it from tax liability.

In conclusion, the Court dismissed the tax revision petitions, emphasizing that based on the factual findings and legal interpretation, there was no liability to tax for the transactions in question.