JUDGMENT

SATYANARAYANA RAJU, J.-These appeals, by special leave, are from the judgment of a Division Bench of the Madras High Court.

Rayalaseema Constructions now defunct was a firm of engineers with its head office at Madras. For the year 1951-52, the firm was assessed under the Madras General Sales Tax Act, 1939 (hereinafter referred to as the Act) on a gross turnover of Rs. 2,23,174-10-0 as on "works contracts". The order of assessment was made on March 25, 1953, and it was then determined that a sum of Rs. 2,440-15-7 was payable by the firm. Deducting the payments made by the firm, a balance of Rs. 775-15-7 remained due in respect of this assessment For the year 1952-53, the gross turnover of the firm was computed to be Rs. 2,54,666-13-9 and the assessment was made in a sum of Rs. 2,785-6-9. Deducting the various payments made by the firm, a sum of Rs. 1,725-6-9 remained due in respect of this assessment. The appellant demanded payment of these sums amounting to Rs. 2,501-6-4. By the time the appellant made the demand, the Madras High Court had held in Gannon Dunkerley & Co. v. Stale of Madras1 that works contracts did not involve any element of sale of materials and that therefo