SETHURAMAN, J.

This is an appeal filed against the order of the Board of Revenue (Commercial Taxes) dated 28th December, 1976. The assessee is a dealer in senna leaves, senna pods, etc. It reported a total and taxable turnover of Rs. 18, 62, 345.57 and Rs. 1, 24, 615.97 respectively for the year 1969-70 under the Tamil Nadu General Sales Tax Act, 1959. Out of Rs. 18, 62, 540.19, Rs. 15, 19, 705.82 related to export sales and there were inter-State sales to the extent of Rs. 2, 18, 023.75. After allowing these deductions of export sales and inter-State sales, the assessing authority determined the total (sic) and taxable turnover at Rs. 1, 24, 810.62. It was found from the accounts that 74, 634 kilograms of senna leaves were exported to foreign countries out of which purchases of 67, 173 kilograms were out supported by any bill. As these purchases were considered to have been made from persons other than the assesses and in the circumstances in which no tax was payable by them under section 3, 4 or 5 of the Act, the assessing officer held that such purchases were liable to tax under section 7-A of the Act. The purchase value of the said goods was estimated at Rs. 67, 173 at the rate of Re. 1 per kilogram and this turnover was assessed under section 7-A of the Act. On appeal, the Appellate Assistant Commissioner, relying on a decision of this Court in M. K. Kandaswami v. State of Tamil Nadu cancelled the assessment of the said turnover.

This order of the Appellate Assistant Commissioner dated 30 December, 1971 was examined by the Board of Revenue in suo motu revision. Subsequently, the Supreme Court reversed the decision of this Court on 15th July, 1975, and the Supreme Court's decision is reported in State of Tamil Nadu v. M. K. Kandaswami The Board of Revenue therefore considered that the order of the Appellate Assistant Commissioner was wrong and gave notice to the assessee to show cause why the order of the assessing authority should not be restored. After bearing the assessee, the Board held that the export sales not being liable to tax under the local Act, this is a case to which section 7-A would apply and that, therefore, the purchase turnover would have to be taxed. In this view, the sum of Rs. 67, 173 brought to tax by the assessing authority was restored in the assessment. It is this order of the Board of Revenue which is now challenged in the present appeal before this Court.Section 7-A runs as follows :

"Every dealer who in the course of his business purchases from a registered dealer or from any other person, any goods (the sale or purchase of which is liable to tax under this Act) in circumstances in which no tax is payable under section 3, 4 or 5, as the case may be, and either, -

(a) consumes such goods in the manufacture of other goods for sale or otherwise; or

(b) disposes of such goods in any manner other than by way of sale in the State; or

(c) despatches them to a place outside the State except as a direct result of sale or purchase in the course of inter-State trade or commerce.

shall pay tax on the turnover relating to the purchase aforesaid at the rate mentioned in section 3, 4 or 5, as the case may be, whatever be the quantum of such turnover in a year :

Provided that a dealer (other than a casual trader or agent of a non-resident dealer) purchasing goods [the sale of which is liable to tax under sub-section (1) of section 3] shall not be liable to pay tax under this sub-section, if his total turnover for a year is less than fifty thousand rupees." *

It is unnecessary to go into the rest of the provision. It is this provision which came up for consideration in M. K. Kandaswami v. State of Tamil Nadu In that case, the facts were as follows : By a memorandum dated 5th March, 1970, the Joint Commercial Tax Officer, Salem, called upon the assessee to pay certain amount by way of tax assessed under this section. According to him, the assessee had purchased castor seeds through his own bought notes from r