Shah, J. - (1.) The respondents are a firm carrying on business in hides and skins in the State of Madras and is registered as a "dealer" under the Madras General Sales Tax Act 9 of 1939. For the assessment year 1953-54 the respondents applied for a licence under S. 5 of the Madras General Sales Tax Act and provisionally paid a sum of Rs. 450 towards licence-fee. The respondents were directed to pay an additional amount of Rs.400. The respondents declined to pay the additional amount and informed the assessing authority that the transactions carried on by them were of the nature of export of hides and skins and no sales tax was payable on goods exported to places outside India.
(2.) The Commercial Tax Officer scrutinised the accounts of the respondent for the year 1953-54 and by order, dated March 29, 1957 determined their turnover from purchases of hides and skins from dealers outside the State and from dealers within the State both tanned and untanned and of sales tanned hides and skins on behalf of resident and non-resident principals. But, following the judgment of the Madras High Court in M. A. Noor Mohamed and Co. vs. State of Madras, AIR 1957 Mad 33, the Commercial Tax Officer held that the respondents were exempt from tax and no licence-fee for the year 1953-54 was payable. He, therefore, declared that there was no demand under S. 8 (B) (2) of the Act, that the tax due for the year was nil and that a notice in Form 'C' be issued for refund of Rs. 450 paid by the respondents.
(3.) No intimation of this order was given to the respondents.;