Judgment

GROVER, J. (on behalf of M. Hidayatullah C.J.I. ; K. S. Hegde J., himself, A. N. Ray and I. D. Dua, JJ.): These appeals by certificate are directed against a common judgment of the Madras High Court in petitions filed under Article 226 of the Constitution by the Cosmopolitan Club, Madras, the Young Men s Indian Association, Madras and the Lawley Institute. Ootacamund challenging the proceedings relating to their assessment to sales tax under the Madras General Sales Tax Act, 1959, hereinafter called the "Act", for supplying food, snacks, beverages and other articles to their members or their guests. It was held by the High Court that each of these clubs could not be regarded as a "dealer" within the meaning of Section 2 (g) read with Explanation I of the Act nor was any sale involved in the aforesaid activity of the club within the meaning of Section 2 (n) read with Explanation I of the Act.

2. The Cosmopolitan Club, Madras, is a social recreation club which was started originally in the year 1873 as an unincorporated association. In 1934 it was registered under Section 26 of the Indian Companies Act 1913 as a non-profit earning institution. Its objects, as disclosed in th