K. K. Mathew, J. - (1.) The short question which arises for consideration in this appeal by certificate is whether the appellant, the Northern Railway, Jodhpur is liable to pay Sales tax on the sales of unserviceable materials and scrap etc. for the period in question.
(2.) In view of the definition of the word 'business' in S. 2 of the Rajasthan Sales Tax Act (Act No. 29 of 1954) as introduced with retrospective effect by the Rajasthan Taxation Laws (Amendment) Act, 1965 (Act No. 9 of 1965), the High Court held that the sales of unserviceable materials were exigible to tax. The definition of the term 'dealer' in Section 2 (f) of the above Act, so far as it is material, runs: " 'dealer' means any person who carries on the business of buying, selling, supplying or distributing goods directly or otherwise, whether for cash, or for deferred payment, or for commission, remuneration or other valuable consideration and includes- (i) the Central or a State Government or any of their departments, a local authority, a company, an undivided Hindu Family or any society (including a co-operative society) club, firm or association which carries on such business......"
(3.) As already indicated by Section 2 of the Rajasthan Taxation Laws (Amendment) Act, 1965 (Act No. 9 of 1965), Section 2 of the Rajasthan Sales Tax Act, 1954 (Rajasthan Act. No. 29 of 1954) was amended, Clause (cc) of Section 2 provides: " 'business' includes- (i) any trade, commerce or manufacture or any adventure or concern in the nature of trade, commerce or manufacture whether or not such trade, commerce, manufacture, adventure or concern is carried on with a motive to make gain or profit and whether or not any profit accrues from such trade, commerce, manufacture, adventure or concern; and (ii) any transaction in connection with, or incidental or ancillary to such trade, commerce, manufacture, adventure or concern; but does not include activities of sale, supply or distribution of goods carried on without any profit motive by- (i) any charitable or religious institution in the performance of its functions for achieving its avowed objects; and (ii) an educational institution, where such sale, supply or distribution is made to its students.";