Judgement

SHAH, J.: The Enfield India Ltd. Cooperative Canteen Ltd. respondent herein was registered as a Co-operative Society under the Madras Co-operative Societies Act 6 of 1932. The object of the Society was to provide a canteen for the employees of Enfield India Ltd. The Society was assessed by the Deputy Commercial Tax Officer to pay sales tax for the years 1959-60 and 1960-61 on its turnover from refreshment supplied to its members. The respondent Society then moved in the High Court of Judicature at Madras three petitions under Art. 226 of the Constitution for orders, quashing the proceedings of the Deputy Commercial Tax Officer, Saidapet assessing the Society to sales-tax in respect of its transactions. Srinivasan J., following a decision of the Madras High Court : Young Men s Indian Association (Read.) Madras v. Joint Commercial Tax Officer, Harbour Division II, Madras, (1963) 14 STC 1030 quashed the orders of assessment. In appeal to the High Court, the orders passed by Srinivasan J., were confirmed. With special leave, the Deputy Commercial Tax Officer has appealed to this Court.

2. Section 3 of the Madras General Sales Tax Act 1 of 1959 makes every dealer whose total tur