TaxTMI 
TaxTMI 
1954 (3) TMI 45
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....e Sales Tax Act, which was added by the Madras General Sales Tax (Amendment) Act, 1947 (Act XXV of 1947). The basis on which the tax was levied under this explanation was that the goods were actually in this State at the time of the contracts of sale. If the assessment had to be made after the Constitution came into force, probably the assessee would have been exempt from the payment of the tax under Article 286 of the Constitution. But, as the assessment year was before that date, the Department and the Tribunal upheld the assessment under the new explanation, Explanation 2 to Section 2(h), which was added by the Amending Act of 1947. Before the amendment, tax could not have been imposed unless the sale was completed within the State of M....
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....s enacted for the purpose of a levy of a general tax on the sale of goods in the State of Madras, could take any of the elements, which go to constitute the same, as establishing sufficient nexus with the territory to justify the imposition of the tax. Before the amendment in the absence of any separate provision establishing the nexus, it was assumed that the place where the property in the goods passes was the place at which the tax could be levied. If this was out- side the State, the tax could not be levied. In order to get over this situation, the State Legislature in 1947 introduced the Explanation 2 to Section 2(h) of the Sales Tax Act, whereunder it is open to the State to justify the imposition of the levy of the sales tax if the g....
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.... under what conditions the property in the goods is to pass to the buyer." In view of this, the argument that the provision in Explanation 2 to Section 2(h) of the Sales Tax Act of 1947 is repugnant to the provi- sions of the Sale of Goods Act must be repelled, and this would be suffi- cient to dispose of the case. But as the learned counsel had rested his case also on the ground that it contravenes Section 107 of the Govern- ment of India Act, assuming that there is a difference regarding the situs between the provisions of the Sales Tax Act, and the provisions in the Sale of Goods Act, it is but proper to deal with that contentions as well. In enacting the provisions of the Sales Tax Act, the Provincial Legislature had undoubted power un....
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....sumes that both the Legislatures were exercising power to legislate under an entry relating to the same subject-matter. If the power of legislation is derived from different entries, no question of repugnancy arises. This principle was settled long ago by the Judicial Committee in Meghraj v. Alla Rakhia(1), and also by the Federal Court in Lakhi Narayan Das v. Province of Bihar(2). In the Privy Council case, the Provincial Legislature enacted a law which was within the Provincial List, and was within its exclusive power. The argument was that the impugned Act was in conflict with certain provisions of the Civil Procedure Code, and other existing Indian law. It was pointed out by their Lordships of the Judicial Committee that the impugned Ac....