Judgment

SHAH, C. J.

( 1 ) THE respondents are dealers in eggs. They purchase eggs in the State of Kerala and sell them to merchants outside the State. Under the Kerala General Sales Tax Act, tax is chargeable on sale of eggs only at the last point of purchase in the State. For the assessment year 1962-63 the Sales Tax Officer assessed the respondents to tax on their turnover in inter-State sales. He held that the sale of eggs being taxable under the State Act, the respondents were liable to pay tax on transactions of sale in the course of inter-State trade under the central Sales Tax Act, 1956. Appeals by the respondents to the Appellate Assistant Commissioner and to the Sales Tax tribunal were unsuccessful. The respondents then moved the High court of Kerala in a "tax revision". The High court, following the judgment of this court in the State of Mysore v. Yaddalam Lakshminarasimhiah Setty and Sons , reversed the order passed by the Sales Tax tribunal and discharged the order of assessment of the turnover arising out of sale of eggs in the course of inter-State trade. With special leave, the State of Kerala has appealed against the orders passed by the High court.

( 2 ) COUNSEL fo