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1958 (4) TMI 52 - SC - VAT and Sales TaxWhether under the Hyderabad General Sales Tax Act, 1950, a dealer as defined in it, purchasing ground-nuts from an agriculturist is liable to pay tax on the purchase, it being conceded that the petitioner is such a dealer? Held that:- Any Act of Parliament declaring certain goods to be essential for its own purposes, as Act XXIV of 1946 does, is not an Act within the contemplation of Article 286(3). The Parliamentary Act, there contemplation, has to be passed in exercise of the powers contained in it and must clearly be referable to it. In fact such an Act was later passed by Parliament. That was "The Essential Goods (Declaration and Regulation of Tax on Sale or Purchase) Act, LII of 1952, which came into force on August 9, 1952. Its preamble states it to be an Act to declare in pursuance of clause(3) of Article 286 of the Constitution, certain goods to be essential for the life of the community and section 3 sets out substantially the provisions of that clause of Article 286 of the Constitution. It cannot therefore be contended that in view of Article 286(3) no tax can be levied on the sale of a commodity declared essential by Act XXIV of 1946. We may add that Act LII of 1952 is not available to the appellant either, for it had not been passed at the date when the levy of the tax objected to in this case was made. Appeal dismissed.
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