Outside-State sales cannot be taxed where a non obstante clause excludes them from the sales tax net.

A non obstante provision in section 29 of the Punjab General Sales Tax Act, 1948 was treated as overriding the charging and turnover provisions so that sales taking place outside the State could not be subjected to tax under the Act. On that construction, consignment sales made outside the State were excluded from taxable turnover, and assessment orders could not lawfully sustain tax on such sales to that extent.

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Issues: Whether sales made outside the State on consignment basis could be taxed under the Punjab General Sales Tax Act, 1948, in view of section 29(1)(a), and whether the assessment orders sustaining such tax could stand to that extent.

Analysis: Section 29 begins with a non obstante clause and expressly provides that tax on the sale or purchase of goods shall not be imposed where the sale or purchase takes place outside the State. The provision was treated as overriding the charging machinery and the definitions relied upon for bringing such sales into the taxable turnover. On that construction, sales effected outside the State could not lawfully be included for assessment under the Act.

Conclusion: The tax on sales made outside the State was not leviable under section 29(1)(a), and the assessment orders were liable to be interfered with to that extent.

Final Conclusion: The challenge succeeded only in part, with the impugned orders set aside insofar as they sustained tax on outside-State sales.

Ratio Decidendi: A non obstante provision excluding tax on sales taking place outside the State overrides the charging and turnover provisions of the sales tax law, and such sales cannot be brought to tax by assessment under that Act.

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