Judgment

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 confirmed on appeal by the District Judge of Salem. Two appeals were taken to the High Court by the State of Madras against those decrees and by a judgment dated February 18, 1955, the decrees were set aside by a common judgment. Against these decrees the appellants have brought these appeals by a certificate of that Court.

2. The appellants are merchants dealing in cotton yarn. They obtained a license under S. 5 of the Madras General Sales Tax Act (Act IX of 1939), hereinafter referred to as the Act . This license exempted them from assessment to sales tax under S. 3 of the Act on the sale of cotton yarn and on handloom cloth "subject to such restrictions and conditions as may be prescribed including as to license and license fees". The license was issued on March 31, 19541 and was renewed for the following years. On September 20, 1944, the Commercial Tax Authorities made a surprise inspection of the premises of the appellants and