The facts necessary for the disposal of this appeal are as follows. The respondent-assessee was a non-resident dealer (not resident in Travancore-Cochin) during the year 1955-56. The period we are concerned with here ends on September 4, 1955. It used to supply coal to consumers in T1'81Vancore Cochin State which later became Kerala. For the assessment year in question (1955-56) the assessee was asked to file statements. showing its turnover of supplies of coal made to purchasers in the State of Kerala and in reply to the notice under s. I 2(2)(b) of. the Travancore Cochin General Sales Tax Act, it stated that the Sales of coal to steamers arriving and berthed in Travancore Cochin State waters were not taxable because the goods were stored by the steamers for consumption on the high seas. The assessee however did not quc:Stion its liability to pay tax in respect of supplies made to other consumers in the State of Kerala. On March 7, 1959 the Sales Tax Officer, Circle I, Mattancherry assessed the respondent on a turnover of Rs. 1,29,352/-. The respondent filed an appeal therefrom and the Assistant Commissioner of Agricultural Income Tax and Sales Tax, Ernakulam allowed the appeal in part and reduced the turnover by omitting the portion of it after 6th ,Sep, !ember, 1955. In the·result, the assessee's turnover was reduced to Rs. 69,407 /-. There was a further appeal to the Kerala Sales' Tax Appella.te Tribunal. This was disposed of on January 2, 1962 in favour of the assessee. The Tribunal held that the sales being inter.State sales were, according to the decision of the Kerala, High Court in T. R. Cs. l, 2 and 3 of 1961 (reported in 14 Sales Tax Cases 850) not taxable. The Tribunal held that s. 26(1)(b) of the General Sales Tax Act, as amended bys. 13(ii) of Act 12 of 1957, prohibited the taxation of inter-State sales after March 31, 1951. The Deputy Commissioner of Agricultqral Income Tax and Sales
