Exemption for sales of reading books applied where the assessee was a dealer selling such books; revisional order set aside.

Sales of reading books, including text books, were held to fall within the exemption notification issued under section 17(1) of the Madras General Sales Tax Act, 1959 where the assessee was found as a fact to be a dealer selling such books. The revisional authority had wrongly relied on a precedent concerning a printer acting on publishers' specifications, which was factually different and did not govern a dealer's sale of reading books. The High Court held that the exemption squarely applied on the recorded findings and that the revisional order restoring the assessment was unsustainable.

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Issues: Whether sales of reading books including text books by the assessee were exempt from tax under the notification issued under section 17(1) of the Madras General Sales Tax Act, 1959, and whether the revisional order setting aside the appellate authority's grant of exemption was sustainable.

Analysis: The notification granted exemption from tax on sales of reading books including text books by any dealer. The appellate authority had recorded a factual finding that the assessee was a dealer and had sold reading books. On that finding, the exemption squarely applied. The precedent relied upon to deny exemption was distinguished on facts, as it concerned a printer of materials on publishers' specifications and did not govern a case where the assessee was found to be a dealer selling reading books. The revisional authority's reliance on that decision was therefore misplaced.

Conclusion: The assessee was entitled to exemption, and the revisional order restoring the assessment was unsustainable.

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