STATE OF TAMIL NADU vs SHAKTI ESTATES & ANR.

The Supreme Court held that the activities of the assessee, a firm engaged in the development of a reserve forest for coffee and cardamom plantation, constituted an 'adventure in the nature of trade' under the Tamil Nadu General Sales Tax Act, 1959, specifically Sections 2(d) and (g). The Court found that the firm did not merely realize the value of a capital asset but actively exploited the forest by clearing unwanted trees and selling them as firewood, timber, and charcoal. Consequently, the Court set aside the High Court and Tribunal's decisions, affirming the liability of the assessee to pay sales tax on the turnover from these activities.