THE STATE OF MADRAS AND ANOTHER vs M/s. M. A. NOOR MOHAMMED AND CO.

The Supreme Court held that under Section 5(vi) of the Madras General Sales Tax Act, 1939, sales tax on hides and skins can only be levied at a single point, but this is contingent upon compliance with licensing requirements. The Court ruled that Rule 16(5) of the Madras General Sales Tax (Turnover and Assessment) Rules, 1939, which restricts single point taxation to licensed dealers, is not ultra vires as it aligns with the provisions of the Act. Consequently, the assessment of sales tax on the respondent, who failed to renew their license, was upheld, affirming the legality of the tax assessment under Section 3 of the Act.