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2013 (8) TMI 679 - HC - VAT and Sales TaxWhether sale of DEPB license constitute business and liable to VAT / Sales Tax - Whether the assesse was carrying out any Business - The assesse effected sale of DEPB license in the course of the trade or commerce and sold them locally during the assessment years 1999-2000 and 2000-2001. The assesse claimed that the sale of DEPB license was not liable to be included in the turnover, there being no "business" carried on in that line - there was no sale of goods; consequently, the same was not assessable under the provisions of the Act – Held that:- For all purposes or for substantive part of the definition "business", there must be frequency, continuity and regularity in the transactions and the said activity would qualify to be termed under the definition of "business", the incidental or ancillary activity to the main business does not call for such interpretation - By use of the expression "any transaction in connection with the business", one can hold that the Act itself does not contemplate the frequency or regularity or continuity of the transactions, as has been done in the substantive part in sub clause (1) of sub section (d) of Section 2 of the Act. As far as the contention of the assessee that it does not purchase DEPB licence was concerned, going by the scheme of DEPB and the purpose and the background in which the same was issued and the value at which it was assigned to the petitioner – there was no justifiable ground to accept the case of the assessee that he was not a dealer dealing in DEPB licence - The issue raised that the assessee was carrying business in DEPB licence was raised only before this Court and not before the authorities below where the question was whether DEPB licence would be liable to tax - it being a question of law the same be rejected - Decided against the assessee.
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