TMI Blog1976 (9) TMI 95X X X X Extracts X X X X X X X X Extracts X X X X ..... iness except banking and insurance and to frame such rules and regulations as may be deemed necessary for the proper conduct of business. 2. To Act as agents or representatives of Corporations, Firms and individuals and Managing Agents for Companies and generally to undertake, transact and execute all kinds of Agency and Brokerage business." The objects incidental and ancillary to the attainment of main objects are as under:- "5. To carry on business as Capitalist, financiers, concessionaries and merchants and to undertake and carry on and execute all kinds of financial, commercial, trading and other operations, and to carry on any other business except insurance and banking as defined in the Banking Companies Act, 1949, which may seem to be capable of being conveniently carried on in connection with any of these objects or calculated directly or indirectly of enhancing the value or facilitate the realisation of or render profitable in all the property or rights of the Company. Other objects which are not included in the above objects have been described in clauses 3 and 10 and they are as under:- " 3. To acquire any real and personal property which the Company may think ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Rs. 50.20 because the appellant did not get itself registered within the prescribed period, as required. The contention of the appellant before the Sales tax Officer was that it is not a dealer engaged in the business its main purpose it to collect the funds, to develop the spirit of savings and thrift amongst the persons. This contention was, however, not accepted by the Sales Tax Officer who assessed the appellant on the local purchased effected from unregistered dealers as stated above. There was an appeal against this order, preferred before the Assistant Commissioner of Sales Tax, Surat. This appeal was, however, not successful, and hence, the appellant has approached this Tribunal in the present second appeal. 5. Shri M.H. Gandhi, the Learned Advocate appearing on behalf of the appellant very strongly contended before us that the appellant s main business is neither to purchase nor to sell any goods. Therefore, the appellant cannot be termed as a dealer liable for registration under the Act because the appellant does not carry on any business. He, therefore, said that the lower authorities were in error in holding that the dealer is liable for registration and as such th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty of the appellant company can be called a business activity. Another decision referred to by the learned Advocate is that of the Supreme Court in state of Tamil Nadu vs. Burmah Shell Oil Storage and Distributing Co. of India Ltd. And Another where in the question that arose was whether the canteen sales and the sales of advertising materials and scrap effected by the Company were liable to tax. As stated in the headnotes of the Report it was held that under the Madras General Sales Tax Act, 1959, sales of advertisement materials and scrap and canteen sales during the period April 1964 to 31st Aug, 1964, were not liable to sales tax, under the Madras General Sales Tax Act, 1959, before its amendment in 1964, the transactions which were incidental or ancillary to trade or commerce where there was no profit-motive were not liable to tax. However, sales after 31st Aug, 1964, of advertisement materials and scrap and canteen sales, in view of the amendment of the definition of business in 1964 in s. 2(D) of the Madras General Sales Tax Act, 1959, were held liable to sales tax. 6. As against this the learned Government Agent has submitted his arguments in writing wherein various aut ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - "2(4) "business" includes; (i) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make profit and whether or not any profit accrues from such trade, commerce, manufacture, adventure of concern: and; (ii).................... but does not include any activity in the nature of mere service or profession." It was the contention of the learned Advocate that the activity of the appellant is not in the nature of any trade, commerce or manufacture or any adventure, etc. but is in the nature of mere service or profession and therefore it cannot be considered as business activity. It was his submission that the appellant s intention was never to sell goods purchased and, therefore even qua purchases; the appellant is not a businessman. It is, difficult for us to agree with this contention of the learned Advocate. In order to decide whether the appellant is a dealer or not in the sense of making any purchases, it will have to be seen whether the entire activity for which the appellant company is floated comes within the sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the definition of "business" in the Act. So far as the contention of the learned Advocate that the activity cannot be called to be in the nature of mere service. This is because in the case of mere service there would be no transfer of goods except for certain incidental materials. When is received in return is the service charges. In the case of the appellant, the money is received not for doing any service but for purchasing the lands for constructing buildings thereon and to sell them at profit besides which other business of purchasing and selling of goods are also contemplated. Nor can the appellant s activity be considered in the nature of profession. Professionals are those persons who qualified to give certain advice to the people approaching them because of their special qualifications or knowledge. The professionals are broadly speaking lawyers, doctors, Chartered Accountants, architects and engineers ; professors and so on. In return for their advice in their capacity of experts they receive the fees without exchange of any goods. If at all any goods are supplied, these would be only incidental to their activity as professional, for example in the case of Doctor-mixtu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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