COMMISSIONER OF SALES TAX Vs. HUKUMCHAND MILLS LTD

JUDGEMENT

(1.) BY this reference made by the Tribunal under Section 44 of the M. P. General Sales Tax Act, 1958 (hereinafter referred to as "the Act") at the instance of the Commissioner of Sales Tax, the following question of law has been referred to this Court for decision:

(2.) THE aforesaid question arises out of the order of the Appellate Tribunal in second appeal in the following circumstances:

(3.) HAVING heard Learned Counsel we have come to the conclusion that the question referred to us must be answered in the affirmative and in favour of the assessee. The Learned Counsel for the non-applicant-assessee has referred to Section 46 of the Factories Act, 1948 and Rules 77 and 82 of the M. P. Factories Rules, 1962 in support of his contention that the activity of running the canteen is a welfare activity which is a legal obligation on the factory owner and the dominant object of running the canteen is welfare of the employees and not carrying on the business in sale of food articles. The transactions of the canteen, therefore, do not partake the character of business-sales as what is intended a welfare measure or service to mill workers and not sale of food supplied to them. Learned counsel has also cited a decision of the Supreme Court in Northern India Caterers v. Lt. Governor of Delhi AIR 1980 SC 674 in support of his contention wherein the following observations have been made: