DEPUTY COMMISSIONER OF AGRICULTURAL INCOME-TAX AND SALES TAX Vs. TRIVANDRUM CO-OPERATIVE DISTRIBUTIVE SOCIETY LTD

JUDGEMENT

(1.) THIS is a petition by the Sales Tax Department under section 15-B(1) of the General Sales Tax Act, 1125. The period concerned is the period from 1st October, 1957, to 31st March, 1958.

(2.) THE respondent purchased "firewood" from the forest department of the State, and later sold it at Trivandrum at Rs. 24 per ton as provided in the agreement with the State dated 14th October, 1957. THE Sales Tax Department had a contention before the Sales Tax Appellate Tribunal that what was sold to the petitioner by the forest department should not be considered as "firewood". This contention was discussed and negatived by the Tribunal for reasons which we consider valid. As we are in agreement with the Tribunal on this point the case has to be dealt with on the basis that what was sold by the forest department to the respondent was "firewood" and that what was sold later by the respondent to its customers was also the same commodity.

(3.) THE expression "dealer" is defined in section 2(d) of the Act as meaning any person who carries on the business of buying or selling goods. THEre is an explanation added to the definition which says that a co-operative society, a club, a firm or any association which sells goods to its members is a dealer within the meaning of the clause. THE controversy before the Sales Tax Appellate Tribunal was whether the State can be considered to be a dealer within the meaning of this definition. THE contention of the Sales Tax Department was that it could not be so considered, and of the respondent, that it should be so considered.