Judgment

SHAH, J.:- These appeals raise a common question. The respondents are dealers in groundnut oil. In the assessment years 1959-60 and 1060-61 they sold quantities of groundnut oil set out in the table below to the Hindustan Lever Ltd.:

C. A. No. Name of respondent Period of sale Value of groundnut oil

2282 R. N. Krishnaswami Naidu & Sons. 1959-60 Rs. 3,73,229.06

2283 A. S. Arunachalam Chettiar 1959-60 Rs. 5,14,106.01

2284 K. Mummudi Chettiar and Co. 1960-61 Rs. 10,27,939.32

2285 K. S. Mohammed Ghani Rowther. 1959-60 Rs. 2,03,709.96

2286 V. Krishna Chettiar and Bros. 1960-61 Rs. 2,48,445.95

2287 V. N. M. A. Rajendra Nadar and Bros. Co. 1959-60 Rs. 1,51,241.24

The groundnut oil supplied to the Hindustan Lever Ltd. was intended to be and was used for manufacturing vanaspati.

2. In proceedings for assessment to sales-tax, the respondents claimed that they were liable to pay tax at a concessional rate under Section 3 (3) of the Madras General Sales Tax Act, 1959. That contention was rejected by the Additional Commercial Tax Officer and the order was confirmed by the Sales Tax Appellate Tribunal. The High Court set aside the orders holding that the respondents were entitled to claim