DEPUTY COMMERCIAL TAX OFFICER, SAIDAPET & ANR. vs ENFIELD INDIA LTD., CO-OPERATIVE CANTEEN LTD.

The Supreme Court ruled that a cooperative society registered under the Madras Co-operative Societies Act, 1932 qualifies as a 'dealer' under Section 2(g) of the Madras General Sales Tax Act, 1959, as it supplies goods to its members for cash or deferred payment. The Court held that the Explanation to Section 2(g) clarifies that such transactions are taxable and does not overstep legislative power. The High Court's finding that these provisions were ultra vires was overturned, affirming that the society's transactions constituted sales under the Act.