Judgement

HIDAYATULLAH, J. : These two appeals with special leave have been filed by Messrs. G. Gilda Textile Agency, Vijayawada, against the State of Andhra Pradesh. They are directed against a common order of the High Court of Andhra Pradesh in two revisions filed under S. 12-B (1) of the Madras General Sales Tax Act, 1939 (9 of 1939).

2. The matter relates to the levy of sales tax from the appellant on its turnover for the years, 1954-55 and 1955-56. The appellant was an agent of several non-resident principles, on whose behalf it booked orders and dealt with the indents. There were agreements between the non-resident principals and the appellant, and three such agreements contained in letters have been produced as instances, and are marked Exs. A-3, A-3 (a) and A-3 (b). Under these agreements, the appellant was appointed as indenting agent in Andhra Pradesh for cloth merchants, who, admittedly, resided and carried on business outside Andhra Pradesh. It was required to book orders and to forward them to the principals, receiving commission on sale of goods despatched to Andhra Pradesh. In some cases, this commission was only available on the orders booked by the appellant, and in