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TMI Blog1961 (10) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... n. 2.. The years concerned are 1956-57, 1957-58, 1958-59 and 1959-60. Article 286 of the Constitution was amended by the Constitution (Sixth Amendment) Act, 1956, on 11th September, 1956. The Central Sales Tax Act, 1956, with the exception of sections 6 and 15, came into force on 5th January, 1957. Section 6, the charging section, came into force on 1st July, 1957. 3.. Clause (1) of Article 286 provides: "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"; and clause (2): "Parliament may by law formulate princip ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... exported from this country. This, however, as held by Vaidialingam, J., is not sufficient to make the sales sales in the course of export out of the territory of India as contemplated by Article 286(1)(b) of the Constitution or, in the words of section 5 of the Central Sales Tax Act, 1956, sales which occasioned the export of the goods from this country. 6.. The words "in the course of" have repeatedly come up for discussion before the Supreme Court of India and as stated by that Court in State of Mysore v. Mysore Spinning and Manufacturing Co., Ltd. and Others[1958] 9 S.T.C. 188. and Burmah-Shell Oil Storage Distributing Co., of India Ltd. v. Commercial Tax Officer[1960] 11 S.T.C. 764. , their meaning should now be considered as well e ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n Bengal Immunity Co., Ltd. v. State of Bihar[1955] 6 S.T.C. 446., Venkatarama Ayyar, J., had to deal with the analogous provision relating to interState trade. He said: "A sale could be said to be in the course of inter-State trade only if two conditions concur: (1) a sale of goods, and (2) a transport of those goods from one State to another under the contract of sale. Unless both these conditions are satisfied, there can be no sale in the course of interState trade." This passage was quoted with approval in Endupuri Narasimham Son v. State of Orissa[1961] 12 S.T.C. 282. 8.. It is clear from the passages extracted above that mere purchases in the State with a view to export, and subsequent export, are not sufficient to secure the ex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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