BERHAMPUR SILK WEAVERS CO-OPERATIVE SOCIETY LTD Vs. STATE OF ORISSA

JUDGEMENT

(1.) IN all these references, the following question has been referred to this court under section 24(1) of the Orissa Sales Tax Act, 1947, by the Member, Sales Tax Tribunal :

(2.) M /s. Berhampur Silk Weavers Co-operative Society Limited, which is the assessee herein, is a society registered under the Orissa Co-operative Societies Act, 1951. It consists of weaver members and deals in silk and tussore goods and is governed by its registered bye-laws. Bye-law 4 which deals with the objects of the society so far as is relevant may be quoted.

(3.) IT is contended by Mr. Roy appearing for the petitioner that the petitioner-society is not a "dealer" and that it neither "carries on any business" within the meaning of section 2(c) of the Act nor does it "purchase goods from its members or supply goods to its members" within the meaning of the latter part of that section. According to him "carrying on business" refers to an activity or activities designed to earn a profit and when there is no element of profit-making in the business, the society cannot be said to be a "dealer". He argues that on proper construction of bye-law 4, it would be apparent that it is the individual members who constitute the society who are actually selling the goods, no doubt through the instrumentality of the society, and that this is apparent from the fact that in the receipts that are issued to the purchasers the name of the weaver member who has manufactured that particular fabric finds mention. In support of his submissions, he relies on a Bench decision of this court in Commissioner of Sales Tax v. K. C. Mohapatra ([1962] 13 S.T.C. 412).