Statutory deeming fiction governs sales tax only when goods existed in the taxing territory at contract date.

The statutory charging provision subjected sales to tax, but the deeming fiction fixing the situs of sale within the Province operated only where the goods were in existence in the Province at the date of the contract. Territorial nexus alone was insufficient unless the factual condition in the fiction was satisfied. Accordingly, turnover was taxable only to the extent it arose from contracts relating to goods existing within the Province at the relevant date, and the reference was answered on that limited basis for application to the assessed transactions.

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Issues: Whether turnover arising from the disputed transactions was liable to sales tax only if the goods were in existence within the Province at the date of the contract of sale.

Analysis: The charging provision imposed tax on sales, and the statutory definition of sale, read with the deeming explanation, created a fictional situs within the Province where goods were actually within the territory at the date of the contract. The taxing authority could rely on territorial nexus, but the statutory fiction operated only when the goods sold were in existence within the Province at the relevant date. A completed sale under the Act was therefore taxable only to that extent, and the existence of the goods at the time of contract was a necessary condition for the deeming provision to apply.

Conclusion: The disputed turnover was liable to sales tax only insofar as it arose from sales pursuant to contracts relating to goods that were in existence within the Province at the date of the contract.

Final Conclusion: The reference was answered by upholding taxability only to the extent permitted by the statutory deeming fiction, leaving the Tribunal to apply that answer to the assessed transactions.

Ratio Decidendi: A statutory deeming provision fixing the situs of sale applies only when the factual condition specified in the provision is satisfied, and tax can be levied on an inter-State or out-of-State sale only to the extent the statute validly deems it to have taken place within the taxing territory.

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