Judgment

GOVINDA MENON J. - This petition under Art. 32 of the Constitution raises the question as to whether the 1st respondent, the State of Uttar Pradesh illegally and unauthorisedly levied sales tax on the 2nd petitioner firm, under the Uttar Pradesh Sales Tax Act (U. P. Act XV of 1948) with regard to the cloth manufactured by the 2nd petitioner, with a view to exporting such cloth outside the territories of India, by customers of the 2nd petitioner called "indentors."

2. The 1st petitioner is the Director of Messrs Cawnpore Textiles Limited, a Public Limited Company, having its registered office in Kanpur, the 2nd petitioner being the Company itself, whose business is the manufacture of cotton cloth an yarn intended for sale in India, as also for export abroad. In the course of that business, the 2nd petitioner sells quantities of cloth to persons styled as Indentors who after dyeing and hand-printing them, export them overseas."

The 2nd petitioner is a dealer as defined in S. 2 (c) of the Uttar Pradesh Sales Tax Act, which by S. 3 lays down that every dealer shall subject to the provisions of the Act, in every assessment year pay a tax on his turn-over of each year which shall b