Lilavati Kirtilal Mehta Medical Trust vs M/S Unique Shanti Developers on 14 November, 2019
10. Supreme Court in Lilavati Kirtilal Mehta Medical Trust Vs. Unique Shanti Developers, (2020) 2 SCC 265, held that (i) ordinarily "commercial purpose" is understood to include manufacturing/industrial activity or business-to business transactions between the commercial entities; (ii) the purchase of goods or service should have a close and direct nexus with a profit generating activity; (iii) the identity of the person making the purchase or the value of the transaction is not conclusive to the question of whether it is for a commercial purpose. It has to be seen whether the dominant intention or dominant purpose for the transaction was to facilitate some kind of profit generation for the purchaser/or their beneficiary; (iv) If it is found that dominant purpose behind purchasing the goods or service was for the personal use and consumption of the purchaser and/or their beneficiary or is otherwise not linked to any commercial activity, the question of whether such a purchase was for the purpose of "earning livelihood by means of self employment" need not be looked into.