Judgment.-The accused is one T.N.K. Govindarajulu Chetty, managing director of T.N.K. Govindarajulu Chetty & Co.

He was convicted by the Fourth Presidency Magistrate, Madras, under section 15 (a) of the Madras General Sales Tax

Act and sentenced to pay a fine of Rs. 500 or in default to undergo simple imprisonment for three months.

The facts are not in dispute and may briefly be stated. T.N.K. Govindarajulu Chetty &38; Co. are the managing agents

of Messrs. Indian Metal and Metallurgical Corporation, having their head office at 498, Mint Street, Madras. T.N.K.

Govindarajulu Chetty is the managing director of that company. For the year 1947-48 they sent a return showing a

turnover of Rs. 7,67,641. Though the company purchased from Bombay 4 feet by 4 feet brass sheets of the value of

Rs. 6,82,017-5-0 and sold them to customers, this amount was not shown in the return but instead, Rs. 1,15,620-8-3

was shown as manufacturing charges in respect whereof they claimed exemption under the Sales Tax Act. When the

Deputy Commercial Tax Officer, Park Town, issued a notice on 26th February, 1949, under Rule 9 of the Madras

General Sales Tax (Turnover and Assessment) Rules to the company pointing

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