VENKATADRI, J.

This revision is against the order passed by the Tribunal holding that the assessee is liable to pay sales tax on the disputed turnover of Rs. 46, 741-40 representing the value of brass sheets and rings supplied to its customers for the assessment year 1957-58.

The assessee is a firm carrying on the business of manufacture and sale of brass sheets and circles at Madras. For the year 1957-58 the assessee returned a gross turnover of Rs. 36, 32, 087-83 and a net turnover of Rs. 33, 08, 111-69. The Commercial Tax Officer, Assessment II, North Madras, determined the net turnover at Rs. 33, 69, 834-84. In determining the taxable turnover of the assessee, the Commercial Tax Officer accepted the contention of the assessee that he manufacturing charges realised by it on the order placed by third parties for conversion of a particular metal supplied by them into sheets of the same metal are not to be included in the taxable turnover. But a scrutiny of the conversion ledger maintained by the assessee disclosed that it received copper scrap from customers for being converted into brass scrap, credit has been allowed to the customers. The Commercial Tax Officer therefore held that these transactions constituted sales taxable under the provisions of the Act.

Aggrieved by this order the assessee preferred an appeal to the Appellate Assistant Commissioner of Commercial Taxes, Madras II, who agreed with the view taken by the Commercial Tax Officer that there are really two transactions, namely, when the assessee receives the copper scrap from its customers and when the assessee sends brass sheets and rings. He also held that the transactions are sales liable to be assessed under the Act and confirmed the order of the Commercial Tax Officer.The assessee again field an appeal before the Sales Tax Appellate Tribunal. Before the Tribunal the assessee field a statement showing the name of the party sending copper scrap, date of receipt of the copper scrap, quantity received for conversion into brass sheets, quantity of despatched goods and date of credit note and amount. The first transaction referred to in that statement gives the following details. One Margabhandu Iyer of Vellore sent copper scrap on 1st May, 1957, which were received by the assessee on 11th May, 1957. The quantity received is mentioned as 560 lbs. The assessee despatched 511 lbs. of sheets on 18th May, 1957, and passed a credit note dated 18th May, 1957, for Rs. 190. In the statement field by the assessee other transactions are also entered similarly. The Tribunal held that the transaction of Margabhandu Iyer indicated that the assessee purchased copper scrap and sold brass sheets and rings. The Tribunal was of the view that the transactions above referred to would come under the definition of "sale" in section 2(h) read with rule 17 of the Madras General Sales Tax (Turnover and Assessment) Rules, 1939. In the end the Tribunal dismissed the appeal. It is against this order of the Tribunal that the assessee has now preferred the present revision.

It is necessary to give some more facts for a proper disposal of the revision. The assessee is a Corporation having its factories at Mettur Dam, Salem District and Tiruvottiyur High Road, Madras. It has depots at Mint Street, Madras, and in mofussil places at Shevapet, Salem and Coimbatore. It is carrying on business in the manufacture and sale of brass sheets and circles etc., at Madras. In the course of its business, it purchases copper scrap, melts them, rolls them into sheets and circles of particular dimensions and sells them. It also undertakes to manufacture sheets for third parties for wages utilising the scrap supplied by them. On some occasions the customers supply the assessee with copper scrap for being converted into brass sheets. But whenever the assessee-firm supplies brass sheets for copper scrap, it mixes 40 per cent. mine to the copper scrap given by the customers and prepares brass sheets as per