1. This appeal by special leave is directed against the judgment of the High Court of Kerala in Tax Revision Case No. 44 of 1960.

2. The respondent, N. Sami Iyer, hereinafter referred to as the assessee, is a dealer in tobacco. He objected to the assessment of the turnover of Rs. 7,757.54 for the assessment year 1957-58, inter alia, on the ground that the goods were the subject-matter of purchases which had already been assessed at the point of purchase in the hands of the assessee. He failed before the Sales Tax authorities, but in a revision the High Court accepted his contention and held that this turnover was not liable to tax.

3. In order to appreciate the contention of the appellant it is necessary to mention a few facts. During the period April 1, 1957 to September 30,1957, the assessee was residing in Malabar and in this area the Madras General Sales Tax Act (9 of 1939) applied. S.3(5) of this Act provides:

"The taxes under sub-sections (1), (1-A) and (2) shall be assessed, levied and collected in such manner and in such instalments, if any, as may be prescribed:

Provided that

(i) In respect of the same transaction of sale, the buyer or the seller, but not both, as