( 1 ) THE Appellant before us which is a firm carrying on business in coffee in Mangalore was the plaintiff in the suit out of which this second appeal arises. The Coffee Board established under the Coffee Act, 1942 (Act VII of 1942) was defendant-1. An agent of the Coffee Board was defendant-2. These defendants are the respondents in this appeal.

( 2 ) ON March 27, 1957 the plaintiff-firm purchased 1000 CWTS. of coffee from the Coffee Board and paid on April 4, 1957, the price of the coffee along with a sum of Rs. 4811/- which was the sales tax calculated at 3 pies for every rupee under the relevant provisions of the Madras General sales Tax Act, 1939, which was operating at that point of time in the District of South Kanara. On May 19, 1958, the Coffee Board demanded from the plaintiff a further sum of Rs. 1,389. 44 as sales tax. It was informed that if the sum of money was not paid, a deposit of the firm with the coffee Board would be appropriated for that purpose.

( 3 ) THE plaintiff-firm repudiated this demand and maintained that no additional sales tax was exigible. By its letter addressed to the Coffee Board on May 26, 1958, it is stated that it would pay