The Cosmopolitan Club, Madras ... vs The Deputy Commercial Tax Officer, ... on 27 November, 1951
6. The prominent requirement of the definition in the Madras Act that the transfer of property must be "in the course of trade or business" is absent in the Act. We do not, however, think that due to this difference we can disagree with the main principle enunciated in Cosmopolitan Club, Madras v. The Deputy Commercial Tax Officer, Triplicane Division [1952] 3 S.T.C. 77 ; On appeal 6 S.T.C, 1 that the supply of refreshments in a members' club registered under Section 26 of the Companies Act, purchased out of club funds, composed of members' subscriptions is not a transfer of property from the club as such to a member. But it may be pointed out that in that case sales tax was already paid by the club, and therefore a decision on the point was necessary. In the present case there is nothing to show that the club has already paid any sales tax. The club's registers and accounts have yet to be inspected. However, as the point arising in this case is important and has been fully argued before us and as other cases are awaiting decision, we think we should express a considered opinion on the questions canvassed.