Report No. 61
Point 8-supply of Goods By Clubs Etc.
A suggestion has been made that the power of the States to levy a tax on the supply of goods by clubs, societies and other associations to their members may be made clear, in view of the restrictive interpretation1 placed by courts. No change on the above point is, however, considered necessary, as such cases would not be many. There is not much possibility of evasion, and the sale is really by members to members.
1. See, for example,
(a) Dy. C.T.O. v. Enfield India Ltd., AIR 1968 SC 838.
(b) J.C.T.O. v. Young Man's Indian Association, 1970 SCC 462.