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PETITIONER: K. R. C. S. BALAKRISHNA CHETTY & SONS & CO.
Vs.
RESPONDENT: THE STATE OF MADRAS
DATE OF JUDGMENT: 29/11/1960
BENCH: KAPUR, J.L. BENCH: KAPUR, J.L. HIDAYATULLAH, M. SHAH, J.C.
CITATION: 1961 AIR 1152 1961 SCR (2) 736 CITATOR INFO : RF 1988 SC 6 (17)
ACT: Sales-Tax--Claim of exemption by licensee--If conditional upon observance of conditions and restrictions--Madras General Sales Tax Act, 1939 (Mad. IX of 1939), s. 5.
HEADNOTE: The appellants, who were dealers in Cotton yarn, obtained a license under the Madras General Sales Tax Act, 1939 (IX of 1939). Section 5 of that Act exempted such dealers from pay- ment of sales tax under s. 3 of the Act subject to such restrictions and conditions as might be prescribed, including the conditions as to licenses and license fees. Section 13 required a licensee to keep and maintain true and correct accounts of the value of the goods sold and paid by him. Rule 5 of the General Sales Tax Rules provided that any person seeking exemption under S. 5 of the Act must apply for license in Form 1 which made the license subject to the provisions of the Act and the rules made thereunder. The appellants on surprise inspection were found to maintain two separate sets of accounts, on the basis of one of which they submitted their returns and the other 737 showed black-market activities. The que...