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TMI Blog1959 (2) TMI 24X X X X Extracts X X X X X X X X Extracts X X X X ..... ta? When we heard learned counsel on this reference, our attention was drawn to a number of decisions of the Supreme Court in various cases in which the provisions of the various Sales Tax Acts in force in India came up for consideration before the Supreme Court. It appears to us that it is not necessary to refer to these cases and that it is sufficient to refer to only a single case in which the Supreme Court has given its latest decision on a point which was identical with the point which arises in the present reference. That decision of the Supreme Court is in Tata Iron & Steel Co. Ltd. v. State of Bihar[1958] 9 S.T.C. 267; A.I.R. 1958 S.C. 452. In the Bihar Act also "sale" was defined in language similar to the definition contained in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ." It will thus be seen that clause (ii) of Explanation II to section 2 (h) of the U.P. Sales Tax Act is identical in language with clause (ii) of the second proviso to section 2 (g) of the Bihar Sales Tax Act. The Supreme Court in its decision, cited above, considered the validity of this provision contained in the Bihar Sales Tax Act and held that it was within the competence of the State Legislature of Bihar to enact such a provision of law. The Supreme Court laid down the principle that the power of legislation of the State Legislature under entry 48 of List II of the Seventh Schedule to the Government of India Act, 1935, when imposing sales tax, was not limited to taxing sales which may have taken place within the State itself. The sco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich we are concerned in this case are sufficient to do so." This principle laid down by the Supreme Court with reference to the Bihar Sales Tax Act is fully applicable to the U.P. Sales Tax Act. Clause (ii) of Explanation II to section 2(h) of the U.P. Sales Tax Act covers the same field as clause (ii) of the second proviso to section 2(g) of the Bihar Sales Tax Act. The second clause of the proviso in the Bihar Sales Tax Act lays down that if the goods are produced or manufactured in Bihar, the sale of such goods must be deemed, for the purposes of the Sales Tax Act, to have taken place in Bihar wherever the delivery or contract of sale may have been made. The provision in the U. P. Sales Tax Act is exactly similar. The U.P. Sales Tax Act ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... above. They were manufactured by the assessee in U.P. and the question of taxing them has arisen on the basis that they were eventually sold by the assessee in the assessment year in question from their depot at Calcutta outside the State of U.P. In such a case the State of U.P. had power to tax the sale of goods to the extent of the nexus between the sale and the taxing State of U.P. in accordance with the principles laid down by the Supreme Court. Consequently, the second question must be answered in the affirmative. As a result, we answer the first question in the negative and the second question in the affirmative. The Department will be entitled to its costs from the assessee for this reference. We fix the fee of learned counsel for th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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