STATE OF GUJARAT Vs. RAIPUR MANUFACTURING COMPANY LIMITED

JUDGEMENT

(1.) M/s. Raipur Manufacturing Company-hereinafter called 'the Company' - carries on the business of manufacturing and selling cotton textiles. In the account year 1953-54 the Company beside selling cloth sold coal and 25 different items of discarded or unserviceable goods and waste products from the factory. The goods sold may be classified under three heads :

(2.) At the instance of the Company, three questions were referred to the High Court of Gujarat, out of which one alone is material in this appeal:

(3.) Section 5 of Bombay Act 3 of 1953 imposes a general tax at specified rates on his taxable turnover in respect of sale of goods upon every dealer who was liable to pay general tax under the Bombay Sales Tax Ordinance No. III of 1952 whose turnover in respect of all the sales exceeds Rs. 30,000 during the year commencing on April 1,1952. The expression "dealer" is defined in S. 2 (6) as meaning "any person who carries on the business of selling goods in the State of Bombay, whether for commission, remuneration or otherwise * * *". Section 2(8) defines "goods" as meaning "all kinds of movable property other than newspapers, actionable claims, stocks, shares and securities, and includes all materials, articles and commodities". Section 2 (13) defines "sale" as meaning "a sale of goods made within the State of Bombay for cash or deferred payment or other valuable consideration and includes any supply by a society or club or an association to its members on payment of price or on fees or subscription, but does not include * * * *". Section 2 (14) defines "sale price" as meaning "the amount payable to a dealer as valuable consideration for the sale of any goods, less any sum allowed as cash discount according to trade practice, * * *". "Turnover" is defined in S. 2 (20) as meaning "the aggregate of the amounts of sale price received and receivable by a dealer in respect of any sale of goods made during a given period after deducting the amount, if any, refunded by a dealer to a purchaser, in respect of any goods purchased and returned by the purchaser within the prescribed period".