TMI Blog1973 (5) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... mary Teachers' Federation, the petitioner can be said to be carrying on business within the meaning of section 2(c) of the Orissa Sales Tax Act?" 2.. The following are the relevant facts and features appearing in the statement of facts drawn up by the Tribunal. The All Orissa Primary Teachers' Federation (hereinafter called the Federation) is an association registered under the Societies Registration Act (21 of 1860). The objects of the association as available from its memorandum are, inter alia, to unite the teachers working in the primary schools throughout Orissa with a view to fostering a spirit of brotherhood and co-operation; to print and publish journals and reviews and bring out other publications in the general interest of, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ll as to outsiders and students and its activities as such appear to be of commercial nature." A further finding of fact was recorded that in the memorandum of association activities like selling of forms, rubber stamps, which apparently were of commercial character, were not contemplated. Accordingly, the Tribunal restored the assessments by reversing the decision of the first appellate authority. At the instance of the assessee, the aforesaid questions have been referred to us. 3.. "Dealer" has been defined under section 2(c) of the Act to mean"any person who carries on the business of purchasing or selling or supplying goods in Orissa, whether for commission, remuneration or otherwise and includes a department of Government which car ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the National Press is not a dealer. He also relies on the decision of the Andhra Pradesh High Court in the case of Hyderabad Asbestos Cement Products Ltd. v. The State of Andhra Pradesh and Others[1972] 30 S.T.C. 26. for bringing in the comparison between the concept of business in the absence of a statutory definition and the statutory definition excluding the profit-motive as an essential ingredient. The learned standing counsel for the taxing department, however, relies upon the case of Deputy Commercial Tax Officer v. E.I.L. Co-operative Canteen Ltd. [1968] 21 S.T.C. 317 (S.C.)., where Shah, J. (as he then was), spoke for the court thus: "By the definition in section 2(g) a 'dealer' is a person who carries on the business of buyi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether to satisfy the definition of 'dealer', the profit-motive in the activity is essential. In the aforementioned decision, the Supreme Court were interpreting section 2(g) of the Madras Act defining the expression 'dealer' and in that context held that even in the absence of a profit-motive an activity by a society of supplying goods to its members for a price may be in the nature of trade. Therefore, existence of profit-motive is not essential for creation of a taxable entity (event)." It is true what has been said above directly supports the stand of the revenue, but this court overlooked the fact that the definition of the word "business" to include activities without profit-motive had led the Supreme Court to come to its conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a clear finding of fact recorded by the Tribunal that the assessee carried on a trade for earning profit. This is what the Tribunal concluded in its appellate decision: "The respondent (assessee) whatever be its object in its articles of association (memorandum) must be held liable to tax because it obviously sells goods to its members as well as to outsiders and students and its activity as such appears to be of commercial nature......The activities, e.g., selling forms, rubber stamps, etc., which are commercial in character are nowhere contemplated. I do not think such activities can be considered as anything otherwise than a business. " True it is that the Tribunal referred to Indal's case[1968] 22 S.T.C. 460. and noticed the fact th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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