FIAZ AHMED AND COMPANY Vs. STATE OF MADRAS

JUDGEMENT

(1.) THIS tax revision petition arises out of proceedings under the Madras General Sales Tax Act, 1959. The question raised is the assessability to tax of the petitioners, and so far as we are able to see, the exact point that arises for determination is not covered by any direct decision of this Court.

(2.) THE petitioners are tanners at Ranipet. For the assessment year 1959-60, the Deputy Commercial Tax Officer, Arcot, assessed them under the Madras General Sales Tax Act, 1959, on a taxable turnover of Rs. 78, 708-13, which included the sum of Rs. 74, 205-46 being the purchase value of wattle bark and other dyeing and tanning materials. THE petitioners contended that they were not dealers in tanning materials and that they would not, therefore, be assessable to tax. This contention was not accepted by the taxing officer, and there was an appeal to the Appellate Assistant Commissioner. THE same contention was reiterated but without success. THE appellate authority held that the purchase of tanning materials by a tanner like the petitioners is in the course of business and that the definition of "dealer" under section 2(g) of the Act was satisfied. THE assessment was confirmed and the appeal was dismissed. THEre was a further appeal to the Sales tax Appellate Tribunal, which took the same view as that taken by the departmental authorities.

(3.) "'Business' includes any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture, whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern."