Raghubar Dayal, J. - (1.) This petition under Art. 32 of the Constitution raises the question of the validity of R. 16 of the Madras General Sales Tax (Turnover and Assessment) Rules, 1939, hereinafter called the rules. The impugned rule was published on September 7, 1955, and was substituted in the place of old R. 16. The new rule was to be effective from April 1, 1955.
(2.) The petitioner is a dealer in hides and skins. He sells hides and skins tanned outside the State of Madras, as well as those tanned inside the State. The Deputy Commercial Tax officer, I Moore Market Division, Madras, assessed the petitioner to sales tax for the year 1955-56 on a turnover of Rs. 29,89,624-15-11. Out of this a turnover of Rs. 28,10,625-2-0 represented sales of tanned hides and skins which had been obtained from outside the State of Madras.
(3.) Sales tax was levied on hides and skins under the provisions of the Madras General Sales Tax Act,, 1939 (Act IX of 1939), hereinafter called the Act. Section 3 is the charging section and its relevant portions read: "3. (1) Subject to the provisions of this Act, (a) every dealer shall pay for each year a tax on his total turnover for such year, and (b) the tax shall be calculated at the rate of three pies for every rupee in such turnover: ********** " Section 5 of the Act provides for exemptions and reductions of tax in certain cases. Clause (vi) thereof provides that the sale of hides and skins, whether tanned or untanned, shall be liable to tax under S. 3, sub-s. (1), only at such single point in the series of sales by successive dealers as may be prescribed.;