The canteen activity of the assessee was an integral part of its main activity and could not be isolated or insulated from it. The assessee could not be called a dealer as its main activity did not amount to business as defined in the Act.

( 1 ) THE petitioner "base Repair Organisation", now called "naval Dock Yard" Visakhapatnam, is maintained by the Defence Ministry for repairing and servicing the ships of the Indian Navy. As required by section 46 of the Factories Act, 1948, the petitioner runs a canteen, to cater to the needs of its employees. The petitioner says that it is running the canteen on "no-profit-no-loss" basis. For the assessment years 1969-70 to 1972-73, the Deputy Commercial Tax Officer-II, Visakhapatnam, treated the turnover of the canteen as taxable turnover under the A. P. General Sales Tax Act, and levied tax thereon. The petitioners contention was that its canteen activity carried on to comply with a statutory obligation is not "business", and that it is not a "dealer" as defined by the Act and therefore not liable to pay any tax. This contention was overruled by the Deputy Commercial Tax Officer, as well as the Appellate Assistant Commissioner in appeal. The matter was carried in second appeal to the Sales Tax Appellate Tribunal, which too held that the proceeds of the sales made in the canteen run by the petitioner constitute taxable turnover, and accordingly dismissed the appeal.

( 2 ) IN these tax revision cases, the first contention urged by Mr. P. Venkatrama Reddy, the learned counsel for the assessee, is that running the canteen is only ancillary and incidental to the main activity carried on by the Naval Dock Yard; and inasmuch as the main activity of the petitioner does not amount to "business" as defined in the Act the petitioner cannot be treated as a dealer.

( 3 ) UNDER section 5 (1) of the Act,"every dealer. . . . . . whose total turnover for a year is not less then Rs. 25,000. . . . . . shall pay a tax for each year, at the rate of. . . . . . ". Section 5 is the charging section. The tax under the Act is, therefore, payable only by a dealer, besides of course, the agent of a non-resident dealer, with which category we are not concerned herein. The expression "dealer" is defined in clause (e) of section 2 (1) in the following words :"dealer means any person who caries on the business of buying, selling, supplying or distributing goods, directly or otherwise, whether for cash, or for deferred payment, or for commission, remuneration or other valuable consideration and includes (i) the Central Government, a State Government, local authority, a company, a Hindu undivided family or any society (including a co-operative society), club, firm or association, which carries on such business; (ii) a society (including a co-operative society), club, firm or association, which buys goods from or sells, supplies or distributes goods to its members; (iii) a casual trader, as hereinbefore defined; (iv) a commission agent, a broker, a del credere agent, an auctioneer or any other mercantile agent, by whatever name called who carries on the business of buying, selling, supplying or distributing goods on behalf of any principal or principals. . . . . . . . . . "the expression "business" is defined in clause (bbb) of section 2 (1), rained it reads thus :"business includes (i) any trade, commerce of manufacture or any adventure or concern in the nature of trade, commerce or manufacture whether or not such trade, commerce, manufacture, adventure or concern is carried on or undertaken with a motive to make gain or profit and whether or not any gain or profit accrues therefrom; and (ii) any transaction in connection with, or incidental or ancillary to, such trade, commerce, manufacture, adventure or concern. "

( 4 ) A reading of the definition of "dealer" makes it clear that a dealer means any person, be it the Central Government, State Government, local authority, incorporated body, Hindu undivided family, society, club firm or association, who carries on the business of buying, selling, supplying or distributing goods, whether directly or otherwise; and whether for cash or for deferred payment or for commission, remuneration or oth