Judgment

AYYANGAR, J : These two appeals are before us by virtue of certificates of fitness granted by the High Court of Andhra Pradesh under Art. 133(1)(c) of the Constitution. The State of Andhra Pradesh is the appellant in both the appeals and one Kolla Sreerama Murthy -a dealer in gunnies-is the respondent in each of them and the point involved relates to the liability of the respondent to Sales Tax in respect of the transactions to which we shall later refer.

2. Civil Appeal No. 368 of 1961 arises out of original suit No. 268 of 1951 in the file of the District Munsif s Court, Rajahmundry by the respondent for setting aside an assessment & obtain refund of a sum of Rs 2,941-7-0 which was partly the sum assessed and collected as sales-tax for the assessment year 1947-48, while Civil Appeal No. 369 of 1961 is from a similar suit praying for identical reliefs in respect of the year 1946-47, the amount of which refund was sought, however, being Rs. 1,631-12-0. The basis of the suits briefly was that the transactions whose turnover was included in his assessment, were not "sales of goods" within the Madras General Sales Tax Act (Act IX of 1939) and that consequently the assessment to