U.L. Bhat, C.J.

1. This is a reference made by the Appellate Tribunal (Board of Revenue), at the instance of the assessee under Section 44(1) of the M. P. General Sales Tax Act, 1958 (for short, the Act). The following question has been referred :

"Whether in the facts and circumstances of the case, the Tribunal was justified in holding the Corporation as a 'Dealers' assessable to the sales tax and whether the sales of the unserviceable materials like tyres, tubes, spare parts etc. be held as a transaction of trade or commerce under Section 2(bb) of the M. P. General Sales Tax Act, 1958 ?"

2. We have heard both sides.

3. The Assessee is the Madhya Pradesh State Road Transport Corporation (for short Corporation). The main activity of the Corporation is to provide transport facilities to people and for this, they acquired a fleet of buses, maintain workshops, purchase spare parts and the like. In the course of operation, spare parts like tyres, tubes etc. become unserviceable and are disposed of. The Additional Sales Tax Officer, for the period 1-4-1977 to 31-3-1978, levied sales tax on the price fetched at the auction held for sale of such unserviceable goods. This order was con