STATE OF TAMIL NADU Vs. SUN PAPER MILLS

JUDGEMENT

(1.) On 12/11/1965, the appellant issued a notification under the provisions of Section 8 (5 of the central Sales Tax Act, 1956, directing that the rate of sales tax on the sale of white printing paper to newspaper concerns in the course of inter-State trade or commerce should be calculated at the rate of 2%. The exemption notification was gazetted on 24/11/1965.

(2.) On 20/3/1967, another notification was issued under the provisions of Section 8 (5 of the central Sales Tax Act, the relevant portions of which read thus:

(3.) On 4/1/1982/16/1/1982, notices of reassessment were issued to the respondents for the period 1975-76 to 1981-82. The notice stated that the exemption notification had been withdrawn on 20/3/1967, and that, therefore, reassessments were required to be made at the un-exempted rate. The notices of reassessment were challenged in a writ petition filed before the High court of Madras. The writ petition was dismissed. The respondents ' filed an appeal before the division bench of the High court. The appeal succeeded, and this appeal by special leave is directed against the division bench's judgment.