Chandrasekhara Aiyar, J. - (1.) This appeal comes before us on leave granted by the High Court of Madras. The appellants 2 to 6 are the legal representatives of V. O. Vakkan who was the plaintiff in the Subordinate Judge's Court and the appellant before the High Court of Madras.
(2.) V. O. Vakkan was a resident of Palluruthy in the Cochin State and was trading in coir yarn. He was assessed by the Deputy Commercial Tax Officers Chowghat (Madras State) to a sales tax of Rs.12,301/4/- on a net turnover of Rs. 12,30,124/- for the year ending 31-3-1946, under the Madras General Sales Tax Act. He objected to this assessment on the ground that he was non-resident foreigner so far as the Madras State was concerned and that he did not carry on any business either personally or through any agent within that State. His objections were overruled by the Deputy Commercial Tax Officer the Commercial Tax Officer of Malabar and the Board of Revenue. Thereupon, he filed a suit O. S. No. 25 of 1948 in the subordinate Judge's Court, Cochin, for a declaration that the assessment was unauthorised, illegal and 'ultra vires'. The Subordinate Judge dismissed this suit, and on appeal, the High Court of Madras upheld the dismissal but gave the plaintiff leave to appeal on the ground that the appeal involved a substantial question of law concerning the interpretation of the Madras General Sales Tax Act.
(3.) It is admitted that Vakkan was residing in Palluruthy and had his factory and place of business in that place. He was not a resident of the Madras State and had not place of business within that State and had no agent there. It was found however, by the courts below that many, if not all of the contracts of Sale of Coir Yarn were entered into by him with European firms in Fort Cochin which is part of the Madras State and the goods were deliverable and delivered in the yards of the purchases in the said place. It was held on these facts that Vakkan, the plaintiff, was a "dealer" within the definition of the term found in the Madras General Sales Tax Act and he was properly assessed.;