JUDGMENT

GROVER, J.

These appeals by special leave from a judgment of the Madras High Court involve a common question.

The facts in the first of these appeals may be stated. The assessee, who is the respondent herein, is a spinning mill manufacturing cotton yarn. It was assessed to sales tax under the Madras General Sales Tax Act, 1959, hereinafter called the "Act". For the assessment year 1960-61 the assessing authority included in the taxable turnover certain amounts representing the sale value of foodgrains and groceries sold in the fair price shop run by the mills and the amount realised by sale of articles of food in the canteen which was run for its employees. The assessee filed an appeal questioning its liability to pay tax on these items. The appellate authority dismissed that appeal. The assessee thereupon filed a further appeal to the Sales Tax Appellate Tribunal which allowed the appeal and directed that the turnover in question be deleted. The revenue went up in revision to the High Court of Madras. A Division Bench of that court dismissed the revision.

The Appellate Tribunal had found that the fair price shop and the canteen were run exclusively for the benefit of the