STATE OF ANDHRA PRADESH Vs. BHRAMARAMBA MALLIKARJUNA SWAMY DEVASTHANAM

JUDGEMENT

(1.) Sri Bhramaramba Mallikarjuna Swamy Devasthanam, Srisailam, which is one of the most prominent Hindu religious temples in the State, is the respondent herein and the State has come in revision aggrieved against the order made by the Sales Tax Appellate Tribunal, setting aside the order made by the Assistant Commissioner of Commercial Taxes confirming the order of the Commercial Tax Officer, holding that the said Devasthanam cannot be said to be a "dealer" within the meaning of section 2(1)(e) of the Andhra Pradesh General sales Tax Act (for short "the Act"). The three items in respect of which the sales tax was sought to be levied are : (a) Sales of food and drink in the canteens run by Devasthanam during the assessment years in question which are for six years from 1970-71 to 1975-76 and also purchase of paddy for running the canteens. (b) Sales of motor parts as scrap. (c) Sales of human hair.

(2.) The contentions advanced on behalf of the revisionist herein by the learned Government Pleader are that though the assessee-Devasthanam may not be carrying on in the main any business activity but running of canteen has no nexus nor is it incidental to the main activity and that being the business activity where food is sold for consideration to those who visit the canteen, must attract the sales tax. Likewise, for the same reasons, the motor parts which are sold as scrap and also the human hair which is collected after being removed and sold thereafter, are parts of business activities and, therefore, such sales must be exigible to tax. The said Devasthanam must be held to be a dealer which is engaged in the activity of business and so to that extent these activities must necessarily be subjected to sales tax.

(3.) The counter contentions are that the Devasthanam which is governed by statutory enactment is a religious and charitable institution and the predominant activities are nothing but religious and charitable in nature and, therefore, merely because it is catering to the needs of pilgrims who come over to Devasthanam for the purpose of having darshan and for whose facility the canteen is run, wherein eatables are supplied for reasonable prices, the Devasthanam cannot be termed as a dealer and such activity cannot be termed as business activity within the meaning of the Act.