TMI Blog1960 (11) TMI 73X X X X Extracts X X X X X X X X Extracts X X X X ..... , it was rightly held that they were not exempt from assessment under the Act. - Civil Appeal No. 490, 491 of 1958 - - - Dated:- 29-11-1960 - KAPUR J.L. AND HIDAYATULLAH M. AND SHAH J.C. JJ. R. Ganapathi Iyer and D. Gupta, Advocates, for the respondent. N.R. Raghavachariar, Advocate, and K.R. Krishnaswami, Advocate, for T.V.R. Tatachari, Advocate, for the appellant. -------------------------------------------------- The Judgment of the Court was delivered by KAPUR, J.- Two suits were brought by the appellants for a declaration against the levy of sales tax by the State of Madras and an injunction was also prayed for. Both the suits were decreed by the Subordinate Judge of Salem and the decrees were confirm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s Rs. 37,039 and for the latter Rs. 3,140. The appellants unsuccessfully appealed against these assessments and their revisions also failed. On August 24, 1945, the appellants brought a suit for a declaration and injunction in regard to the first assessment alleging that the assessment was against the Act. On September 2, 1946, a similar suit was brought in regard to the second assessment. It is out of these suits that the present appeal has arisen. The controversy between the parties centres round the interpretation of the words "subject to" in section 5 of the Act. The High Court has held that on a true interpretation of the provisions of the Act and the rules made thereunder, the observance of conditions of the licence was necessary ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , he shall maintain a true and correct account in such form as may be prescribed in this behalf." The following rules are relevant for the purpose of this appeal and we quote the relevant portions: Rule 5. "(1) Every person who- (a).......................................................................... (b) deals in cotton and/or cotton yarn, (c).......................................................................... (d).......................................................................... (e)............................shall if he desires to avail himself of the exemption provided in sections 5 and 8 or of the concession of single point taxation provided in section 6, submit an application in Form-I fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from taxation but that section clearly makes the holding of a licence subject to restrictions and conditions prescribed under the provisions of the Act and the rules made thereunder because the opening words of that section are "subject to such restrictions and conditions as may be prescribed." Under section 13 an important condition imposed under the Act is the keeping by the dealer and every person licensed of true and correct accounts showing the value of the goods sold and paid by him. Next there is rule 5 of the General Sales Tax Rules which provided that if any person desired to avail himself of the exemption provided in section 5, he had to submit an application in Form I for a licence and the Form of the licence shows that the l ..... X X X X Extracts X X X X X X X X Extracts X X X X
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