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TMI Blog1956 (2) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... oth to the petitioner by railway. The consignors at the same time despatched to a bank at Pilkhuwa the relative railway receipts drawn in favour of "self", together with hundis in respect of the price of the consignment, and upon the petitioner returning the hundis the bank endorsed the railway receipts in favour of the petitioner who then took delivery of the consignments. In some cases the consignors sent the goods to the petitioner at Pilkhuwa by motor truck, the price of these goods being paid by the petitioner at the time of delivery. In respect of the assessment year 1952-53 the respondent Sales Tax Officer determined the turnover of the petitioner at Rs. 4,05,086-14-0 of which Rs. 3,81,657-1-6 was the turnover of imported cotton cl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eads as follows: "286. (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 sale or purchase passed in another State. (2) Except in so far a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the Shanmugha Vilas Cashew-nut case(1) that the first sale by a wholesale dealer of goods brought by him into this State from another State is not a transaction "in the course of" inter-State trade or commerce and is accordingly not exempt from liability to sales tax. It is however contended by the petitioner that as a consequence of the later decision of the Supreme Court in Bengal Immunity Co., Ltd. v. State of Bihar(2), Shanmugha Vilas Cashew-nut case(1) is no longer an (1) [1953] 4 S.T.C. 205; A.I.R. 1953 S.C. 333. (2) [1955] 6 S.T.C. 446; A.I.R. 1955 S.C. 661. authority which this Court must necessarily follow; and this is so, it is said, because the Supreme Court in the former case gave its approval to the dissenting judgment of Das ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de whose territories the sale or purchase is deemed to take place. Now it is important to appreciate what the case of Bengal Immunity Co. Ltd. v. State of Bihar(1) decided. In that case the Supreme Court reversed its earlier decision in State of Bombay v. United Motors (India) Ltd.,(3) and it adopted the view expressed by Das, J., in his dissenting opinion in the Shanmugha Vilas Cashew-nut case(2) that except in so far as Parliament may by law provide otherwise no State law can impose or authorise the imposition of any tax on sales or purchases when such sales or purchases take place in the course of inter-State trade or commerce and irrespective of whether such sales or purchases do or do not fall within the Explanation. That Court did not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or commerce. We are therefore of opinion that the first submission is not well-founded. The second contention of the petitioner raises the question of the validity of sub-rule (d1) of rule 2 of the Rules made under the Act. The sub-rule reads thus: "(d1) 'importer' means, as respects goods imported into U.P. from any other State in India: (a) in a case where the goods are not imported for the purpose of re-sale in the same condition as they were imported by the person who imported them, the dealer in such other State, who made the sale as a direct result of which the goods are imported into Uttar Pradesh; (b) in a case where the goods are imported for the purpose of re- sale in the same condition as they were imported by the person who impo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of 8th June, 1948, is in- valid as being at variance with section 3A of the Act as it now stands. The first paragraph of the Notification provides that the proceeds of sale of certain goods "shall not be included in the turnover of any dealer" except at the point in the series of sales by successive dealers as is mentioned in the Schedule to the Notification. At the time this Notification was published sub-section (1) of section 3A read thus: "3-A. (1) Notwithstanding anything contained in section 3, the Provincial Government may, by notification in the official Gazette, declare that the proceeds of sale of any goods or class of goods shall not be included in the turnover of any dealer except at such single point in the series of sale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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