ORDER

The appellants are members' clubs. They are in appeal by special leave against the judgment and order of a Division Bench of the High Court of Andhra Pradesh ([1992] 87 STC 227 (AP)), and subsequent orders ([1992] 87 STC 341 (AP)) following the same, whereby it was held that the appellants are liable to pay sales tax under the Andhra Pradesh General Sales Tax Act, 1957 on the supplies of food and drink to their members.

A principle contention on behalf of the appellants is that when a members' club supplies food or drink to its members, there is no sale because a members' club only acts as the agent of the member. Reliance is placed in this behalf upon the judgments of this court in Secretary, the Madras Gymkhana Club Employees Union v. Management of the Gymkhana Club [1968] 1 SCR 742 and Joint Commercial Taxes Officer, Harbour Division - II, Madras v. Young Men's Indian Association [1970] 1 SCC 462 ([1970] 26 STC 241 (SC)). In the former case it was held that a club belongs to the members for the time being on its list of members. Thus, members can deal with the club as they like. A club is identified with its members at a given point of time, so that it cannot be said that