( 1 ) THE State of Andhrais the appellant. The respondent herein filed a suit for recovery of the sales tax wrongly collected from him under the provisions of the Madras General Sales Tax Act. The trial Court dismissed his suit. But on appeal, the Subordinate Judge decreed his claim.

( 2 ) THE main question raised by the learned Government Pleader is that the respondent has violated the provisions of section 8 of the Act and rule 12 (3) of the madras General Sales Tax Rules, 1939. Section 8 is in the following terms :-"the State Government may on application and on payment of such fee as may be prescribed in that behalf, license any person under this section who for an agreed commission or brokerage, buys or sells on behalf of known principals specified in his accounts in respect of each transaction and may exempt from the tax or taxes payable under section 3, such of his transactions as are carried out in accordance with the terms and conditions of his license. "

( 3 ) RULE 12 (3) runs as follows :-"if a person who holds a license under section 8 also deals otherwise than for an agreed commission or brokerage on behalf of known principals in the State, he shall keep separate accoun

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