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TMI Blog1954 (4) TMI 32X X X X Extracts X X X X X X X X Extracts X X X X ..... atches to buyers outside the State of Madras and the matches sold were sent to them out of Madras. What the assessees claimed in the first instance even before the Tribunal was that they were entitled under Section 7 of the Madras General Sales Tax Act to rebate of one half of the tax levied on the sales. During the argu- ments before the Tribunal the assessees claimed that the sales themselves came within the purview of Article 286(1)(a) and the Explanation thereto of the Constitution, and that the sales were not subject to any tax in the State of Madras under the Madras Act. The Tribunal rejected that contention and granted them rebate under Section 7 of the Act, even which the department had refused. The only point argued before us was w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the powers vested in the President by the proviso to Article 286(2) of the Constitution, the President promulgated an Order, C.O. No. 7 of 1950, which came into force on the very date the Constitution came into force. It cannot be disputed that the turnover in dispute in these two cases was liable to sales tax under the Madras Act before 26th January, 1950. Whether the President's Order under the proviso to Article 286(2) of the Constitution saved the right of the Madras State to tax such sales up to 31st March, 1951, is the question. That the turnover in dispute was that of inter-State trade of the assessees within the meaning of Article 286(2) of the Constitution cannot be in dispute. The goods sold by the assessees were despatched fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in which they were delivered. The assessees offered to file affidavits before us to prove that the delivery was for consumption in the States in which the goods were delivered within the meaning of the Explanation to Article 286(1)(a). It is not for us sitting in revision to reopen questions of fact. There was not material enough for the assessees to invoke the benefit of Article 286(1)(a) with the Explanation thereto, whatever the scope of the Article and the Expla- nation was. In that case, only Article 286(2) could apply and if it did, the proviso and the President's Order issued thereunder justified the levy of the tax by the State of Madras up to 31st of March, 1951. We do not consider it necessary to remand the cases for further en ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rmal commercial channels, the transactions (1) [1953] 4 S.T.C. 133; 1953 S.C.J. 373. (2) [1953] 4 S.T.C. 205. would partake of an inter-State character and fall under clause (2). In that case, it would be unnecessary to enquire further whether they would be covered by the Explanation to clause (1)(a), as they would be clearly taxable under the President's Order C.O. No. 7 of 1950 to which reference has been made already, as it was admitted that sales tax was validly levied on such purchases before the commencement of the Constitution. As the taxability of such purchases on either view of the facts was not disputed, no arguments were addressed to us on the scope of clause (2) and the Explanation to clause (1)(a), as has been stated." That, a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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