Judgment

RAMASWAMI,, J.

( 1 ) THESE two appeals are brought by special leave from the judgment of the Kerala High court dated 30/06/1964, in Writ Appeals Nos. 101 and 103 of 1964.

( 2 ) THE appellant was a dealer in cars, trucks and radios in Trivandrum and Alwaye and other places in the State of Kerala. The appellant was a registered dealer under the Kerala General Sales Tax Act, 1125. For the assessment year 1960-61, the appellant filed a return showing a net turnover of Rs. 3,76,554. 66 taxable at 2 np. , Rs. 703. 79 at 4 np. , Rs. 1,06,45,113. 66 at 7 np. and Rs. 467. 79 at 6np. , After perusing the books of accounts of the appellant, the respondent issued a notice pointing out that a turnover of Rs. 33,25,728. 00 had not been included in the return. The appellant replied that the said amount represented transactions of hire-purchase entered into by the appellant-company with its customers and that these transactions were not taxable under the Kerala General Sales Tax Act, 1125. Notwithstanding the objection of the appellant, the respondent proceeded to assess the appellant on a turnover inclusive of the disputed amount of Rs. 33,25,728. 00. The respondent also made a levy of sur