TMI Blog1957 (8) TMI 17X X X X Extracts X X X X X X X X Extracts X X X X ..... e Commissioner of Sales Tax, objection was taken on behalf of the Club that the supply of refreshments, etc., by the Club to its members, did not constitute sale and that therefore the Government had no jurisdiction or power to levy such tax. In two of the above applications, the Club seeks the issue of a writ of certiorari to quash the orders of the Commissioner of Sales Tax and in the other two applications, it seeks the issue of a writ of mandamus directing the Government to forbear from levying and collecting sales tax on the value of the refreshments, etc., supplied by the Club to its members. The question for consideration is whether the supplies made by the Club to its members of refreshments, drinks, etc., can be regarded as a sal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e course of trade or business; the expression "in the course of trade or business" makes it clear that the transaction must be commercial in its nature; in other words, it must be a business carried on for some pecuniary gain. The expression "dealer" which is defined as meaning persons or associations engaged in the business of buying, selling or supplying goods, also underlines the fact that the transaction must be of a commercial nature. A business is a trade or profession at which one works regularly and business is ordinarily for profit. A perusal of the constitution of the Secunderabad Club and its by- laws shows that it is an association of persons, each of whom contributes funds by means of entrance fees, periodical subscriptions a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the monthly subscription, such charges or price for amenities, services and supplies and their use, as the committee of the Club may fix from time to time. There is no provision for payment of any dividend or bonus to the members of the Club except in the event of the Club being liquidated. The learned Government Pleader has contended that the Club has been making profits on the supplies made by it to its members of the articles from its store. The fact that the Club made a profit in any particular year does not make any difference. The real criterion is whether it is doing business with a view to make a profit. Profit may be incidental but the Club is not doing business with a view to make a profit. A Division Bench of the Madras H ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itioner Club does no more than this though the drinks supplied by it may be of the alcoholic and spirituous variety. On a consideration of the constitution of the petitioner Club, I am satisfied that there is no taint of commerciality in the supply of goods to its members and also that there is no profit motive. The Secunderabad Club is undoubtedly a members' Club and not a proprietary Club and the decision in The Cosmopolitan Club case(1) clearly applies to the petitioner Club. I, therefore, hold that the petitioner Club is entitled to the issue of writs as prayed against the 1st respondent in each petition, and it is ordered accordingly. In the circumstances of the case, there will be no order as to costs. Petition allowed. - ..... X X X X Extracts X X X X X X X X Extracts X X X X
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