The respondent is a registered dealer with its head office at Madras and branches in Madurai, Rajanalavam and Salem inside the State of Tamil Nadu and also in certain places in the States of Kerala and Andhra Pradesh including Hyderabad.
During the years 1960 61 to 1964 65 and 1966 67 upto October, 1966, it was dealing in various good,, including cloth, yarn, etc.
and was being assessed to tax under the Act on the turnover of the business.
Appeals by certificate from the orders dated 3rd July 1967 of the High Court of Madras in Writ Petitions Nos.
The respondent objected to these proceedings on the ground that the sales were second sales number liable to tax and filed three writ petitions which are subject of these appeals.
The gross turnover of the respondent included sales of yarn by the Madurai Mills Limited to the respondent to its head office in Madras and also to its branches.
The appellant thereupon called upon the respondent to produce ,accounts and certain other documents, on the assumption that the sales so effected were chargeable to tax as first sales in the State.
During the year 1965 66 the respondent transferred to Madras State certain quantities of yam from the stock so purchased at its branches in the State of Andhra Pradesh and Kerala and sold the same to local dealers.
1845 1847 of 1969.
CIVIL APPELLATE JURISDICTION Civil Appeals Nos.
5.08,247/ for the assessment year 1965 66.
T. Desai, A. V. Rangam and A. Subhashini, for the appellant.
K. Daphtary, Gobind Das and Lilly Thomas, for the respondent.
The first petition was for quashing the summons issued under the Act and requiring the respondent to furnish certain vouchers of companyton yam, branch transfer accounts and particulars relating to the years 1960 61 to 1964 65 And 1966 67 upto October, 1966 .
2684 to 2686 of 1966.
The High Court of Madras allowed all the three petitions and quashed the proceedings as prayed for.
The Judgment of the Court was delivered by JAGANMOHAN REDDY, J. These three appeals by certificate under Article 133 1 c of the Constitution are against the judgment of the Madras High Court which allowed the three Writ Petitions filed by the respondent under Article 226 of the Constitution of India by which it challenged the pro ceedings proposed to be taken by the Sales Tax Officer under the Madras General Sales Tax Act 1959 hereinafter called the Act and the rules thereunder in respect of sale transactions in the assessments 1960 61 to 1964 65 and 1966 67 upto October, 1966 .
The second petition was for directing the appellant to forbear from taking any steps for verification and in disallowing the exemption for the second and subsequent sales of yam purchased by the respondent companypany from the Madurai Mills Limited in respect of the aforesaid period.
The third petition prayed for the issue of mandamus to the appellant to forbear from disallowing the exemption for the second and subsequent sales of yarn estimated at Rs.
