The judgment of the court was delivered by

SUBRAMONIAN POTI, J. - This revision is at the instance of the Deputy Commissioner of Agricultural Income-tax and Sales Tax, Ernakulam. It is against a decision of the Kerala Sales Tax Appellate Tribunal, holding that the assessee was not liable to pay tax on a turnover of Rs. 1,42,536.61, which was assessed by the Sales Tax Officer as the tax on escaped turnover for the year 1967-68. The controversy is whether the turnover sought to be assessed relates to sales to the respondents M/s. Alwaye Agencies, Alwaye (referred to as the "distributor" in this judgment), by the Tranvancore-Cochin Chemical Limited. Udyogamandal (referred to as the "company"). The assessee had been appointed as distributor under an agreement entered into on 11th February, 1967, between the assessee and the company in regard to the sale of sodium hydrosulphite manufactured by the company in the area covered by the Kerala State. It is only the transactions subsequent to 1st September, 1967, that are disputed to be not sales. There is no dispute that the transactions up to that date are not taxable. According to the distributor, no purchase was made from the com