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TMI Blog1968 (8) TMI 115X X X X Extracts X X X X X X X X Extracts X X X X ..... Constitution of India read with Article 264 before the amendments made by the Constitution (Seventh Amendment) Act, 1956, to the erstwhile State of Vindhya Pradesh during the relevant assessment period for the purpose of imposition of sales tax. The respondent-firm manufactures and deals in bidis having head office at Maihar which was a part of the erstwhile United States of Vindhya Pradesh. The Rajpramukh promulgated the Vindhya Pradesh Sales Tax Ordinance No. II of 1949 for the levy of a tax on sales of goods in Vindhya Pradesh. After Vindhya Pradesh had been included in the list of Part C States in the Schedule in the Constitution the aforesaid Ordinance was applied to the whole of Vindhya Pradesh with effect from April 1, 1950, by a no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were repealed or deemed to have been repealed with effect from the dates specified in the corresponding entry in column 3 of that Schedule. In the Schedule the Vindhya Pradesh Sales Tax Ordinance No. II of 1949 was repealed from December 29, 1950. The Vindhya Pradesh Legislative Assembly also passed the Vindhya Pradesh Laws (Validating) Act, 1952 (Act VI of 1952). Section 2 of that Act provided that C.P. and Berar Sales Tax Act, 1947, would be deemed to be in force in Vindhya Pradesh from April 1, 1951. The entire history of legislation relating to the sales tax in the erstwhile State of Vindhya Pradesh has been given because the periods of assessments involved in both the appeals are from April 1, 1950 to June 30, 1950, and July 1, 1950 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ge on the point whether Article 286 applied to Part C States. It may be mentioned that the High Court had agreed with the Tribunal that the said article was applicable. If that view is affirmed it is not disputed that both the appeals will have to be dismissed. Article 264 of the Constitution, as it stood before its amendment by the Constitution (Seventh Amendment) Act, 1956, which appeared in Part XII, Chapter I, provided: "In this Part, unless the context otherwise requires,- (a) .................................................................... (b) 'State' does not include a State specified in Part C of the First Schedule; (C) .................................................................... Article 286(1) was in the following ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for any State specified in Part C a body, whether nominated, elected or partly nominated and partly elected, to function as a Legislature for the State; or a Council of Advisers or Ministers, or both with such constitution, powers and functions, as may be specified. The Parliament under the powers conferred by the Constitution enacted the Part C States (Laws) Act, 1950, giving power to the Central Government to extend any enactment in force in Part A to the States in Part C "with such restrictions and modifications as it thinks fit". The validity of the provisions of that Act came up before this Court in Re. the Delhi Laws Act [1951] S.C.R. 747. We need not, in this case, state the views which were expressed in that special reference. Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in Part C. Article 270 deals with taxes levied and collected by the Union and distributed between the Union and the States. The prescribed percentage of the aforesaid taxes shall not form part of the Consolidated Fund of India except in the case of proceeds attributable to States specified in Part C. Now there are several other articles in Part XII which precede and follow Article 286 about which even the counsel for the appellant could not confidently say that the word "State" used in these articles would not take in Part C States as well. Such articles are 275, 276, 277, 280, 282, 287 and 291. Thus the meaning of the word "State" in Article 286 will have to be ascertained from the context. It will be quite legitimate to not only look a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estrictions on the legislative powers of the State for preventing impediment and discouragement to the free flow of trade within India regarded as one economic unit and for preventing commodities essential for the life of the community throughout India from being subjected to sales tax then there could be no ground whatsoever to differentiate Part C States from Part A or Part B State in the matter of restrictions put by Article 286 on the legislative power of the State. It must be remembered that it was contemplated and provided by the Constitution that Part C States could have their own Legislatures and even an Act was passed, as previously mentioned, in which detailed provisions were made regarding these matters. (The Government of Part C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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