JOINT COMMERCIAL TAX OFFICER, HARBOUR DIV. II MADRAS vs YOUNG MEN'S INDIAN ASSOCIATION (REG.) MADRAS & ORS.

The Supreme Court held that members' clubs supplying refreshments to members and their guests do not constitute 'dealers' liable for sales tax under the Madras General Sales Tax Act, 1959, as there is no sale involved. The Court emphasized that without a transfer of property, there can be no sale subject to tax, referencing Entry 54, List 11 of the 7th Schedule of the Constitution. The clubs were acting as agents for the members, recouping expenses rather than engaging in a sale, thus no sales tax could be levied.