SPHEROIDEL CASTINGS LIMITED Vs. STATE OF TAMIL NADU

JUDGEMENT

(1.) IN these petitions filed under section 38 of the Tamil nadu General Sales Tax Act, there are two points in dispute. The first relates to a sum of Rs. 859. 27. The said sum represents the sale of certain miscellaneous items of empties and discarded materials. These materials was acquired by the assessee in the course of its business. The assessee claimed that the sale was not in the course of business. However, the Sales Tax appellate Tribunal held that in view of explanation to section 2 (d), even such transaction when they were incidental or ancillary or in connection with the business were taxable and, in support of its decision, relied on the pronouncement of the Supreme Court in State of Tamil Nadu v. Burmah Shell Co. Ltd. The Tribunal, therefore, sustained the addition as made by the sales tax authorities. It is this conclusion which is now challenged.

(2.) IN view of the definition in section 2 (d) read with the explanation thereof, it is clear that even the transactions incidental or ancillary to the business carried on by the assessee will be taxable. The test as to whether the assessee is carrying on business in the particular items could no longer hold the field. The conclusion of the Tribunal based on the statute as well as on the decision of the Supreme Court is, therefore, correct. We do not find any error so as to justify any interference on our part with reference to this conclusion.