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Laxmi Engineering Works vs P.S.G. Industrial Institute on 4 April, 1995

11. The next point is whether the complainant is consumer as defined under the Act. In case the appellant/complainant had purchased the machine for commercial purposes then it will not come under the explanation attached to Section 2(1)(d) of the Act. Certainly, the appellant is selling the milk at large scale and in such circumstances, it can be taken that he is doing this business for commercial purposes. To support this proposition, there is judgment of the Hon'ble Supreme Court "Laxmi Engineering Works versus Rs. G. Industrial Institute", 1995 (3) SCC 583:1995 AIR (SC) 1428 wherein it has been so observed "Commercial" denotes "pertaining to commerce" (Chamber's Twentieth Century Dictionary); it means 'connected with, or engaged in commerce; mercantile: having profit as the main aim" (Collins English Dictionary) whereas the word "commerce" means financial transactions especially buying and selling of merchanidise, on a large scale" (Concise Oxford Dictionary). The National Commission appears to have been taking a consistent view that where a person purchases goods "with a view to using such goods for carrying on any activity on a large scale for the purpose of earning profit" he will not be a "consumer" within the FIRST APPEAL NO. 380 OF 2012 8 meaning of Section 2(d)(i) of the Act. Broadly affirming the said view and more particularly with a view to obviate any confusion - the expression "large-scale" is not a very precise expression - the Parliament stepped in and added the explanation to Section 2(d)(i) by Ordinance / Amendment Act, 1993" and the business at large scale is done with a purpose to earn profit, therefore, it can be categorize that the machine has been purchased for commercial purposes.
Supreme Court of India Cites 22 - Cited by 950 - B P Reddy - Full Document
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