ORDER

The appellant, Cosmopolitan Club, is incorporated under section 26 of the Companies Act, 1913. The said club is in appeal against the judgment and order dated December 5, 2001 ([2002] 127 STC 475 (Mad)), of a Division Bench of the Madras High Court, whereby it was held that the appellant was liable to pay sales tax under the Tamil Nadu General Sales Tax Act, 1959, on the supplies of food and drinks to its members.

The main contention on behalf of the appellant is that when a members' club supplies food or drinks 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, Madras Gymkhana Club Employees Union v. Management of the Gymkhana Club [1969] 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 a club has an