Judgment

SHELAT,C. J.

( 1 ) THE question arising in this reference is whether the petitioners can be said to be dealers in cotton within the meaning of the definition of "dealer" in section 2 (6) of the Bombay Salestax Act, 1953, and whether the sale of 411 bales of Californian cotton effected by them during the assessment year 1953-54 can be included in their total turnover and be charged to sales tax. The petitioners are manufacturers of cotton textile goods and for the purpose of conducting their aforesaid business, they have necessarily to purchase cotton from time to time. During the year 1953-54, the petitioners purchased cotton of the value of Rs. 47,75,769. 00 and out of the cotton so purchased, they sold 411 bales of Californian cotton for Rs. 3,89,445. 00 in two lots on the 31st of May, 1953, to the Khatau mills Ltd. , and the Edward Textile Mills Ltd. The price paid by the petitioners for these 411 bales was Rs. 3,91,433. 00, whereas the price realised by them as a result of the said two sales came, as aforesaid, to rs. 3,89,445. 00, resulting actually in the loss of Rs. 1,988. 00. The Sales Tax Officer included these two sales in the turnover of the petitioners and charg