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State Of Andhra Pradesh vs Abdul Bakhi And Bros on 8 April, 1964

This controversy is no longer res integra.In State of A.P. v. Abdul Bakhi & Bros. [(1964) 7 SCR 764], a three- Judge Bench of this Court considered a similar question having arisen under the Hyderabad General Sales Tax Act, 1950. The respondent was carrying on business of tanning hides and skins and selling the tanned skins. He kept in stores a total quantity of tanning barks. He contended that since he was not dealing in them but stored them for the purpose of manufacture, he could not be held to be a dealer and that, therefore, he is not liable to pay the sales tax on its turnover. This Court had rejected the contention and held that when a person is buying or selling a commodity- specified in the Rule for use as finished products in another commercial use, he is engaged in the business of buying, selling or supplying that commodity and, therefore, he is a dealer within the meaning of that Act.
Supreme Court of India Cites 3 - Cited by 145 - J C Shah - Full Document
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