BALAKRISHNA AYYAR, J.

The Cosmopolitan Club, Madras, is a social and recreational association with a strength of some twelve hundred members of more. It was founded in 1873. In 1934 it was incorporated under section 26 of the Indian Companies Act 1913. Where people foregather there is often a demand for refreshments and the Club supplies these at certain standard rates previously approved of. On the total amount of the bills in respect of the refreshments supplied to the members the State of Madras has been charging sales tax under section 3 of the Madras General Sales Tax Act, 1939. On 22nd August, 1949, the secretary of the Club wrote to the Government requesting them to exempt the sale refreshments by the Club to its members from liability to pay sales tax. By an order dated 21st September, 1949, the Government negatived the request. In paragraph 10 of the affidavit filed by the honorary secretary of the Club it is stated :-

"The amount till now paid by the Club to the State of Madras is Rs. 10, 198-3-11 and the petitioner submits that the levy of sales tax on the total value of the refreshments supplied to its members is ultra vires and illegal and the State of Madras