Hindustan Zinc Limited vs Commercial Taxes Officer on 17 December, 1990
In Madhya Pradesh Electricity Board, Jabalpur v. The Commissioner of Sales Tax, Madhya Pradesh , the point for consideration was; whether the Madhya Pradesh Electricity Board, which was supplying the electricity and steam to the consumers is a dealer under the Madhya Pradesh Sales Tax Act and whether the sale of the coal-ash and specification and tender forms are liable to Sales Tax. The Madhya Pradesh High Court, after considering the law on the point came to the conclusion that the Madhya Pradesh Electricity Board was not a dealer as per the provisions of the Madhya Pradesh Sales Tax Act as the activities of the Board was only with respect to generation, distribution, sale and supply of electrical energy. The learned Judges of the Madhya Pradesh High Court, in this case, also, came to the conclusion that "the specification and tender forms are given by the assessee at a certain price to the persons who desired to give tenders for certain contracts and it cannot be held that by supplying the tender forms to the persons concerned, the assessee became a dealer in that transaction. The point is clear and it does not require consideration. "While dealing with this case, the learned Judges of the Madhya Pradesh High Court did not consider and deal with the law on the point and the learned Judge, also, did not take into consideration the unamended definition of the word 'business', even which was in existence at that time. This case, thus, does not help the case of the petitioner because after the decision of the case the definition of the word business under the R.S.T. Act has been amended which is at variance with the definition of the word "business" at the relevant time under the M.P. Sales Tax Act.