Das, J.

1. This is a reference under Sec.21 (3), Bihar Sales Tax Act, 1914 (hereinafter to be referred to as the taxing statute). The taxing statute was repealed by the Bihar Sales Tax Act, 1947, but the proviso to Sec.32 of the said Act saved all proceedings under the taxing statute. Nothing, therefore turns upon the repeal, and this case has to be decided on the construction of the relevant provisions of the taxing statute.

2. I give below a brief summary of the statement of the case on which the questions of law to be decided by us are raised. The assessee is the Tobacco Manufacturers (India) Limited, Monghyr (hereinafter to be referred to as the assesses). The opposite party was originally the Province of Bihar, now the State of Bihar. The accounting period for which the assessee is assessed is the period of six months from October 1944 to March 1945. The Superintendent of Commercial Taxes, Monghyr, by his order dated 26th July 1946, made an assessment against the assesses under Sec.10 (2) (b) of the taxing statute. That assessment order shows that the gross turnover, as shown by the return submitted by the assesses, was Rs. 2,81,83,119-15-8. Making a deduction under Se