K. R. C. S. BALAKRISHNA CHETTY & SONS & CO. vs THE STATE OF MADRAS

The Supreme Court ruled that under Section 5 of the Madras General Sales Tax Act, 1939, exemption from sales tax is conditional upon adherence to prescribed conditions and restrictions. The Court held that the appellants, who maintained two sets of accounts—one for legitimate sales and another for black-market activities—could not claim exemption from sales tax as they violated the conditions of their license. Consequently, the Court affirmed the assessment of sales tax against the appellants.