V.G.OAK, J. - (1.) I have read the judgment prepared by my learned brother Satish Chandra, J. I agree that the sale of food in the canteens maintained by the two mills is liable to tax under the U.P. Sales Tax Act, 1948 (hereinafter referred to as the Act) but the fee charged by Aligarh Muslim University to cover expenditure on dining-halls is not liable to sales tax.
(2.) SECTION 3 is the charging provision. Under section 3, every dealer has to pay a tax on his turnover. The term "dealer" has been defined in clause (c) of section 2 :- "'Dealer' means any person or association of persons carrying on the business of buying or selling goods ......." Admittedly, the two mills are engaged in various operations in order to earn profit. The two companies carry on the business of buying and selling goods. There is no doubt that the two companies are dealers as defined by the Act.
(3.) THE question has been raised whether the activity of the mills in so far as they sell food in canteens constitutes business. It is true that the mills are under an obligation to maintain the canteens. But that circumstance dose not alter the fact that this particular operation is a part of the general activity of the two mills in manufacturing goods. Maintaining canteens should be considered as a part of the general business of the mills. It is true that the mills do not earn a profit from the canteens as such. But that does not alter the fact that food is sold in the canteens. Profit is not an essential element of sale. A sale at cost price is also a sale. The stand taken by the respondents is further supported by clause (aa) of section 2 :- "Business of buying or selling includes such business carried on without the motive of making of profit.";