TaxTMI 
TaxTMI 
1959 (1) TMI 17
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.... and 1st April, 1951, to 31st March, 1952, in the district of Patna. 2.. The assessee was assessed to sales tax, by the Superintendent of Sales Tax, Central Circle, Patna. The assessment orders dated the 27th March, 1953, are enclosed (Exhibits A & A-1). 3.. The assessee then filed appeal petitions (Exhibits B & B-1) before the Deputy Commissioner of Sales Tax, Bihar. For reasons explained in his order dated the 18th September, 1954, (Exhibit C), the Deputy Commissioner of Sales Tax, Bihar, dismissed the appeal petitions. 4.. The assessee then filed revision petitions (Exhibits D & D-1) before the Board of Revenue, Bihar. For reasons explained in its order dated the 18th April, 1955, (Exhibit E), the Board did not admit the revisio....
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....dent of Commercial Taxes, Central Circle, Patna, with regard to the articles which were sold and delivered for consumption within the territorial limits of Bihar. For the period from 1st April, 1951, to 31st March, 1952, the assessee was ordered to pay as sales tax a sum of Rs. 36,204 and odd by the Superintendent, Commercial Taxes, Central Circle, with regard to sale of goods and machinery which were delivered for consumption within the territorial limits of Bihar. It was objected on behalf of the assessee before the taxing authorities that the sales made by the assessee were made in the course of inter-State trade and commerce and so taxation was barred under the provisions of Article 286 (2) of the Constitution. This argument was rejecte....
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....wing terms: "286. Restrictions as to imposition of tax on the sale or purchase of goods.-(1) No law of a State shall impose, or authorise the imposition of, a tax on the sale or purchase of goods where such sale or purchase takes place(a) outside the State; or (b) in the course of the import of the goods into, or export of the goods out of, the territory of India. Explanation.-For the purposes of sub-clause (a) a sale or purchase shall be deemed to have taken place in the State in which the goods have actually been delivered as a direct result of such sale or purchase for the purpose of consumption in that State, notwithstanding the fact that under the general law relating to sale of goods the property in the goods has by reason of such sal....
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.... purchase of goods which was being lawfully levied by the Government of any State immediately before the commencement of the Constitution of India, shall until the thirty-first day of March, 1951, continue to be levied notwithstanding that the imposition of such tax is contrary to the provisions of clause (2) of Article 286 of the said Constitution." In view of the Sales Tax Continuance Order promulgated by the President, it is clear that the tax imposed upon the assessee for the period from 26th January, 1950, to 31st March, 1951, is not liable to attack on the ground that there is a violation of the provisions of Article 286(2) of the Constitution. A point was raised, however, on behalf of the assessee that under the definition ....
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....to the purchaser passed outside the limits of the State of Bihar and so the taxing authorities had no jurisdiction to levy sales tax with regard to these transactions. But the question raised by learned counsel on behalf of the assessee, in our opinion, is outside the scope of the question which has been referred to the High Court by the Board of Revenue in this case. The question moreover depends upon investigation of facts as to in whose name the railway receipt was endorsed, whether the railway receipt was handed over by the bank to the consumer against cash payment inside Bihar and where title passed to the purchaser in each of the transactions for which the tax has been imposed. These questions of fact have not been investigated before....