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TMI Blog1958 (4) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... y Sarkar, J. Bose, J., delivered a separate Judgment. SARKAR, J.-The Hyderabad General Sales Tax Act, 1950, came into force on May 1, 1950. As it originally stood, sales of coarse and medium cloth were not liable to be taxed under it. The Act was amended by Hyderabad Act XXVII of 1952 which came into force on August 1, 1952, and as a result of the amendment, sales of course and medium cloth were made taxable under the principal Act. Therefore, the Sales Tax Officer, Secunderabad, on different dates in the months of October, November and December, 1952, made five provisional orders of assessment, one in respect of each of the five appellants including the whereby he levied a tax on the sales of the appellants including the sales of c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ncipal Act) in view of Article 286(3) of the Constitution and certain other enactments to which reference will be presently made, declaring these varieties of cloth to be essential goods. It may here be stated that by a farman issued by H.E.H. the Nizam on November 23, 1949, it was directed that the Constitution of India when promulgated would apply to the territories of Hyderabad. At the relevant period Hyderabad was one of the Part B States defined in the Constitution. The first enactment to which the appellants refer is the Essential Supplies (Temporary Powers) Act, XXIV of 1946. This Act declared cotton textiles to be essential goods and was applied to the Hyderabad State on August 17, 1950. The point is that in view of this dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... life of the community shall have effect unless it has been reserved for the consideration of the President and has received his assent." This section clearly states that a law by a State Legislature made after the commencement of Act LII of 1952 shall not impose a tax on the sale or purchase of commodities declared essential by the Parliamentary Act. In doing this it is only carrying out the clear intention of Article 286(3). Therefore, a law made by a State Legislature before Act LII of 1952 commenced to operate is not at all affected by Article 286(3). The principal Act and its amending Act were such Acts and *Since reported as Konduri Buchirajalingam v. The State of Hyderabad and Others [1958] 9 S.T.C. 397. were hence effective i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stitution, shall not be deemed to be 'sale' within the meaning of this clause." It is said that the purpose and effect of this explanation was to make all sales of goods declared essential by Parliamentary enactment exempt from liability to tax under the principal Act. We do not think that such is the effect of the explanation. It only says that a sale of goods in respect of which no tax can be imposed by reason of Article 286(3) shall not be a sale liable to be taxed by the principal Act. Article 286(3) only prevents State Legislatures by a law passed after a Parliamentary Act declaring goods to be essential for the life of the community from taxing the sales of these goods. Therefore, a transfer of goods which under the explanatio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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