Judgment

GROVER, J.-These appeal by special leave are from a judgment of the Rajasthan High Court holding that the assessment of sales tax on "Bardana" imported into the State in the hands of the first importer under a notification, dated August 11, 1959 issued in exercise of the power conferred by Section 4(2) of the Rajasthan Sales Tax Act, 1954, hereinafter called the "Act" was invalid and that the imposition of penalty in respect of the assessment years 1963-64 and 1964-65 was also bad and illegal.

2. The respondent is a partnership firm carrying on the business of commission agent for the sale of gunny bags manufactured from jute. The following notification was issued by the Government under Section 4(2) of the Acton August 11, 1959:

"In exercise of the powers conferred by sub-section (2) of Section, 4 of the Rajasthan Sales Tax Act, 1954 and in supersession of this department Notification No. F. 5(139) E & T/57, dated the 19th December, 1958, the State Government being of the opinion that it is expedient in the public interest to do so, hereby exempts from tax the sale of Bardana (old, new or being received as container) except on the first point at the hands of an importer in