https://www.taxtmi.com/caselaws?id=127844 The U.P. sales tax provision was treated as valid because a State may tax sales where there is sufficient nexus between the transaction and the taxing State, even if the sale is completed outside the State. Applying that principle, manufacture of oils and soaps in Uttar Pradesh supplied the necessary territorial connection, so clause (ii) of Explanation II to section 2(h) was upheld as intra vires. On the same reasoning, sales made from a depot at Calcutta were held taxable in Uttar Pradesh because the goods had been manufactured within the State. The assessee's challenge failed and the tax liability on the disputed sales was sustained. en-us Wed, 25 Feb 1959 00:00:00 +0530 Wed, 20 Mar 2013 11:32:55 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=127844 The U.P. sales tax provision was treated as valid because a State may tax sales where there is sufficient nexus between the transaction and the taxing State, even if the sale is completed outside the State. Applying that principle, manufacture of oils and soaps in Uttar Pradesh supplied the necessary territorial connection, so clause (ii) of Explanation II to section 2(h) was upheld as intra vires. On the same reasoning, sales made from a depot at Calcutta were held taxable in Uttar Pradesh because the goods had been manufactured within the State. The assessee's challenge failed and the tax liability on the disputed sales was sustained. Case-Laws VAT and Sales Tax Wed, 25 Feb 1959 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=127844