GOVT. MEDICAL STORE DEPOT, GAUHATI vs The SUPDT. OF TAXES, GAUHATI & ORS.

The Supreme Court held that the Government Medical Store Depot at Gauhati, which operated on a 'no loss no profit' basis, does not qualify as a 'dealer' under Section 2(b) of the Central Sales Tax Act, 1956. The Court found that the absence of profit motive in transactions precludes the classification of the Depot as a business entity liable for sales tax. Consequently, the Court quashed the assessments made by the Taxing Authority and allowed the appeal, overturning the High Court's dismissal of the writ petition.