Judgment

KHANNA, J.:- This appeal by special leave is against the judgment of the Madras High Court whereby the High Court dismissed the petition filed by the appellant under Section 38 of the Tamil Nadu General Sales tax Act, 1959 (hereinafter referred to as the State Act).

2. The matter relates to the assessment year 1960-61. The appellant firm is a dealer in cotton yarn. The appellant bought yarn from local dealers and manufacturers and, in turn, sold that yarn by way of inter-State sale. Sales tax under the State Act on the yarn purchased by the appellant had been paid by those manufacturers and dealers. The inter-State sales of yarn made by the appellant were assessed to tax under the Central Sales Tax Act (hereinafter referred to as the Central Act) in the hands of the appellant. The appellant claimed refund of the tax amounting to Rs. 16,769.96 paid under the State Act in respect of the yarn sold by it in the course of inter-State trade in accordance with Section 15 (b) of the Central Act and the proviso to Section 4 of the State Act read with Rule 23 of the Tamil Nadu General Sales Tax Rules, as these provisions stood at the relevant time. The Additional Commercial Taxation O