TMI Blog1982 (12) TMI 169X X X X Extracts X X X X X X X X Extracts X X X X ..... puty Commercial Tax Officer-II, Visakhapatnam, treated the turnover of the canteen as taxable turnover under the A.P. General Sales Tax Act, and levied tax thereon. The petitioner's contention was that it's canteen activity carried on to comply with a statutory obligation is not "business", and that it is not a "dealer" as defined by the Act and therefore not liable to pay any tax. This contention was overruled by the Deputy Commercial Tax Officer, as well as the Appellate Assistant Commissioner in appeal. The matter was carried in second appeal to the Sales Tax Appellate Tribunal, which too held that the proceeds of the sales made in the canteen run by the petitioner constitute taxable turnover, and accordingly dismissed the appeal. In t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er, as hereinbefore defined; (iv) a commission agent, a broker, a del credere agent, an auctioneer or any other mercantile agent, by whatever name called who carries on the business of buying, selling, supplying or distributing goods on behalf of any principal or principals.................." The expression "business" is defined in clause (bbb) of section 2(1), and it reads thus: "'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 or undertaken with a motive to make gain or profit and whether or not any gain or profit accrues therefrom; and (ii) any transaction i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o business. It is not possible to agree with this submission. According to the definition, if the main activity is in the nature of trade, commerce or manufacture, any ancillary or incidental transaction, be it per se in the nature of trade, commerce or manufacture or not, is also treated as "business". But the converse is not true. In other words, if the main activity is not business, but if an ancillary or incidental activity is per se business, the incidental or ancillary activity does not cease to the business, merely because it is ancillary or incidental to the main activity, which itself is not business. The definition is not capable of being read in such a manner. We are, therefore, unable to agree with Mr. Venkatarama Reddy that, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ton Mills Company Ltd. v. Sales Tax Officer [1964] 15 STC 505, the Allahabad High Court was considering the case of dining halls maintained and run by the Aligarh Muslim University, wherein food and refreshments were served to its resident-students. The court examined the purposes for which the University was established, as well as its academic Ordinances, and concluded: "the dininghall service is an integral part of the University for imparting education to the students. It is indissolubly blended with, and is an inseparable component of, education of this University". It was further observed that, it was difficult to appreciate the respondent's argument that the dining-hall service of the University should be separately treated, and qua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ically by public auction or by inviting tenders. When the turnover on this account was sought to be taxed, this Court held that inasmuch as the Corporation was not a dealer having regard to the nature of its activity, the sale of old or scrapped vehicles or other scrapped or unserviceable material by it cannot equally be treated as business, nor can it be held to be a dealer in that behalf. While it is true that the main premise of this judgment that the A.P. State Road Transport Corporation is not a "dealer" may be open to doubt in view of the subsequent decision of the Supreme Court in District Controller of Stores v. Assistant Commercial Taxation Officer [1976] 37 STC 423 (SC), this decision is certainly relevant in so far as it says tha ..... X X X X Extracts X X X X X X X X Extracts X X X X
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