The assessee, Ashok Leyland Ltd., is a firm with its factory at Ennore, within the State of Madras, where it assembles motor cars, and with an elaborate organisation spread over several States for the sale of those cars and their accessories. In the assessment year 1952-53, the Deputy Commercial Tax Officer assessed the firm to sales tax on a turnover of about 30 lakhs of rupees. He was of the view that the turnover of about 111 lakhs was not liable to be taxed under the Act. The Commercial Tax Officer took up the matter suo motu in exercise of the revisional powers vested in him by section 12 of the Madras General Sales Tax Act. He overruled the objection of the assessee, that he had no jurisdiction to revise the assessment, and eventually he held that a turnover of about 43 lakhs was also liable to be taxed.

The assessee appealed to the Appellate Tribunal. The Tribunal also negatived the contention of the assessee, that the Commercial Tax Officer had no jurisdiction to revise the assessment made by the Deputy Commercial Tax Officer. Of the turnover, the liability to tax which was in dispute, the Tribunal held that about 12 1/2 lakhs alone fell within the scope of Artic