ISMAIL, J.

The assessee is a public limited company and is a dealer in cycles and cycle spare parts, besides being a distributor of tubes and accessories and we are concerned in the present revision case only with tubes. The assessee reported a total and taxable turnover of Rs. 9, 76, 12, 421.89 and Rs. 35, 15, 327.00 respectively. It disputed the inclusion of Rs. 34, 56, 080.29, representing the turnover in relation to tubes. The assessee claimed exemption in respect of the same on the ground that the sales were second sales of declared goods, and therefore, they were not liable to be taxed. The assessee's contention was that the tubes were made out of steel strips and coils by the Tube Products of India Ltd., who, in turn, purchased the strips and coils from Messrs. Hindustan Steel Ltd., that the Tube Products of India Ltd., after manufacture of tubes out of steel strips and coils had sold them to the assessee after charging sales tax at 3 per cent, which happened to be the same rate for Central Sales Tax as well as Tamil Nadu General Sales Tax Acts; and that since the tax had been paid under the Tamil Nadu General Sales Tax Act, 1959, the subsequent sale of the tubes