TMI Blog2004 (4) TMI 535X X X X Extracts X X X X X X X X Extracts X X X X ..... Sales Tax Act, 1959 (hereinafter referred to as "the Act") and the last one relates to original assessment. 2.. It was contended by the petitioner that it was not a "dealer" and at any rate for the sales of discarded parts or old used buses, no tax should have been levied as such sales constituted "second sales". 3.. The main question to be decided is whether the petitioner is a "dealer"? 4.. It is necessary to notice the relevant provisions as they stood in the relevant time. As per section 2(g) "dealer" means any person who carries on the business of buying, selling, supplying or distributing goods, directly or otherwise, whether for cash, or for deferred payment, or for commission, remuneration or other valuable consideration, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r profit and whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern; and (ii) any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern. 5.. Learned counsel for the petitioner has contended that the Corporation, which had been established to provide transport service to the public, cannot be said to have carried on any business of buying or selling, and therefore, the sales effected by such corporation in respect of discarded parts or old used bus would not attract sales tax under the Act. Learned counsel for the petitioner has further submitted that the very fact that Explanation (3), which was added subsequently, would imply that b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the State that there is any separate intention on the part of the Port Trust, to carry on business in the unserviceable and unclaimed goods. Its contention has been that the main activities of the Port Trust amounted to 'carrying on business' and that these sales, even if they were incidental, fell within the meaning of the word 'business'. The argument fails in view of our finding that the main activity is not one amounting to 'carrying on business'." In view of the aforesaid conclusion, it was held that the sale of discarded materials or scrap materials would not attract the provisions of the Act. 7.. Learned counsel appearing for the respondents has submitted that the aforesaid decision would not be applicable to the present case. O ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rganisation whose activity is that of providing road transport. In the course of its carrying on of the said business some obsolete parts, spare parts, etc., are not required by it. As a prudent business organisation the said items, which were obviously used or intended for use in its business, are sold when there is no requirement for them. We find it difficult to accept that such sales cannot even be regarded as occasional sales of a business nature which would make the respondent a casual dealer within the meaning of that expression occurring in section 2(bb) of the said Act." It was further observed: "12. The definition of the word 'business' in the Orissa Act being pari materia with the definition of such expression in the Madras A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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