STATE OF TAMIL NADU vs THIRUMAGAL MILLS LTD. ETC.

The Supreme Court upheld the decision of the Madras High Court, affirming that the spinning mill's operation of a fair price shop and canteen for employees did not constitute 'business' under Section 2(d) of the Madras General Sales Tax Act, 1959. The Court emphasized that the primary requisite of 'business' is the presence of a commercial character, which was absent in this case as the activities were intended solely for employee welfare without profit motive. Consequently, the taxable turnover was correctly determined by excluding these sales from the assessment.