STATE OF GUJARAT vs M/S. RAIPUR MANUFACTURING COMPANY LTD.

The Supreme Court held that under the Bombay Sales-tax Act, 1953, for sales to be taxable, it must be established that the seller had the intention to carry on business in the commodity sold, as per Section 2(6). The Court found that the respondent-Company's sales of discarded items and coal did not demonstrate such intention, as they were not by-products of the textile manufacturing process. Consequently, the High Court's ruling in favor of the Company was upheld, confirming that the turnover from these sales was not taxable.