TMI Blog1976 (2) TMI 155X X X X Extracts X X X X X X X X Extracts X X X X ..... n respect of the transactions in the canteen run by the Madras Advocates' Co-operative Society. The society is registered under the Madras Co-operative Societies Act, 1932 (6 of 1932). One of the objects of the society is the running of a restaurant for the benefit of the members on a non-profit basis. On 22nd February, 1969, the Deputy Commercial Tax Officer, Esplanade I Division, inspected the c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amount to sales. It was further stated that if the turnover was found to be assessable, then the assessments could be compounded under section 7. The objections were overruled and the transactions were held liable to tax. The respective amounts for several years as gathered from the accounts were therefore brought to tax. Appeals were filed before the Appellate Assistant Commissioner and they wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ide members. On the other two points also, the Tribunal accepted the assessee's submissions. The result was that the assessments were cancelled. In the present appeals, the learned counsel for the revenue submitted that these are cases where the commercial tax authorities found that there were some sales of tiffin and refreshments to non-members also. On this point, there is a definite finding o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Officer v. E.I.L. Co-operative Canteen Limited[1968] 21 S.T.C. 317 (S.C.). This decision has been considered by a fuller Bench of the Supreme Court in a later decision reported in Joint Commercial Tax Officer, Harbour Division II, Madras v. Young Men's Indian Association, Madras[1970] 26 S.T.C. 241 (S.C.). In the second decision, the assessees were three, namely, (1) Cosmopolitan Club registered ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... held that it was acting only as an agent for its members in the matter of the supply of various preparations and articles to them so that no sale would be involved. It was pointed out that there was no element of transfer. Applying this decision of the Supreme Court, it has to be held that there is no sale of any refreshments by the society. The result would be that there is no liability to tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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