Case: Deputy Commissioner of Agricultural Income Tax and Sales Tax, South Zone, Quilon Vs. Greenham Estate Private Limited

SHAH, J.1. In this case the basic facts which gave rise to the appeal are identical with the facts on which this court decided the case of Deputy Commissioner of Agricultural Income-tax and Sales Tax, Quilon v. Travancore Rubber and Tea Co. ([1967] 20 S.T.C. 520.)2. The respondents are engaged in the business of growing rubber trees. They tap rubber trees, collect latex, convert the latex so collected into sheets and transport them to their customers who reside out of the State of Kerala pursuant to contracts of sale. The transactions are transactions of sale governed by the Central Sales Tax Act, 1956 (74 of 1956). That Act enacts by section 2(b) that a dealer means "any person who carries on the business of buying and selling goods, and includes a Government which carries on such business". The definition of the expression "dealer" under the Travancore-Cochin General Sales Tax Act which was applicable at the material time was different. But in the assessment and collection of tax the liability has to be determined by the provisions of the Central Sales Tax Act. That was expressly so decided in Travancore Rubber and Tea Co.s case ([1967] 20 S.T.C. 520.). The court in that case held that a person who carries on the business of growing rubber trees, collecting latex and converting it into sheets for the purpose of marketing was not a dealer within the meaning of the Central Sales Tax Act even though he sold the rubber sheets.3.

Decision reasoning: 0[ds]That was expressly so decided in Travancore Rubber and Tea Co.s case ([1967] 20 S.T.C. 520.). The court in that case held that a person who carries on the business of growing rubber trees, collecting latex and converting it into sheets for the purpose of marketing was not a dealer within the meaning of the Central Sales Tax Act even though he sold the rubber sheets.