Judgment

SHAH, J.

( 1 ) MESSRS Bell Mark Tobacco Company-respondents in this appeal-are dealers in tobacco and tobacco products. They were assessed to sales tax by the Deputy Commercial Tax Officer, Puduk- kottai, on their turnover in the years 1955-56, 1956-57 and 1957-58 from sales of "chewing tobacco". Their appeals to the Commercial Tax Officer and the Sales Tax tribunal, Madras, were dismissed. The respondents then approached the High court of Madras in exercise of its revisional jurisdiction and raised three principal contentions : (1) that they were not liable to pay sales tax on their turnover from the sales of packets of chewing tobacco prepared by them; (2) that the cost of packing material was not liable to be included in computing the taxable turnover ; and (3) that they were entitled to rebate of the excise duty paid by them on the raw tobacco from which the chewing tobacco was prepared. The High court held that in computing the taxable turnover of the respondents, the turnover from the sales of "chewing tobacco" was liable to be included and the cost of packing material could not be excluded from the taxable turnover of the respondents. But in theview of the High court,