TMI Blog1956 (8) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... any goods shall be deemed for the purpose of this Act to have taken place in Mysore, wherever the contract of sale might have been made (a) if the goods were actually in Mysore at the time when the contract of sale or purchase in respect thereof was made' and hence whether such sales being complete in Mysore do not attract Mysore sales tax." (2) Whether the petitioner is not liable to sales tax on the said quantity of tobacco and cigarettes of the total value of Rs. 5,76,70,424-7-5 which were sold and exported outside the State of Mysore for the purposes of consumption outside the State under clause (2) of Article 286 of the Constitution of India under the Sales Tax Continuance Order of the President issued in October, 1950, stating inter a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the manufacturing company's factory for despatch to the brand-owning company or to such other person as the brand-owning company may direct, etc." "Clause 10 is: The manufacturing company shall invoice all goods manufactured for the brand-owning company to the brand-owning company or as the brand-owning company may direct and the amount of each such invoice shall be taken up to the credit of the manufacturing company in the books of the brand-owning company in Calcutta." Relying on the accounts of the assessee for the transactions during the three quarters ending on 30th of June, of September and of December, 1950, tax was levied on the value of goods sold in Mysore as well as of those sold to outsiders. There is dispute only about the l ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t may by law otherwise provide, no law of a State shall impose, or authorise the imposition of, a tax on the sale or purchase of any goods where such sale or purchase takes place in the course of inter-State trade or commerce: Provided that the President may by order direct that any tax on the sale or purchase of goods which was being lawfully levied by the Government of any State immediately before the commencement of this Constitution shall, notwithstanding that the imposition of such tax is contrary to the provisions of this clause, continue to be levied until the thirty-first day of March, 1951. (3) No law made by the Legislature of a State imposing, or authorising the imposition of, a tax on the sale or purchase of any such goods as ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... respect to a sale or purchase may be hit by one or more of these bans." In Ram Narain Sons Ltd. v. Assistant Commissioner of Sales Tax[1955] 6 S.T.C. 627; A.I.R. 1955 S.C. 765., the same view has been reiterated and it was held that the President's Order referred to in the proviso to sub-article (2) had the effect of lifting the ban under that sub-section and not the ban under sub-article (1)(a) and the Explanation thereto. The claim for exempting sales of articles exported for consumption outside the State rests on sub-article (1) and the Explanation. The grounds alleged are that the goods were not actually delivered for the purpose of consumption within Mysore. That consumption of the goods was and was intended to be outside the State is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Ernakulam. At page 753 in Bengal Immunity Co., Ltd. v. State of Bihar[1955] A.I.R. 1955 S.C. 661; 6 S.T.C. 446, at p. 622, 623, 624., Venkatarama Iyer, J., observes: "The fact is that while for some purposes delivery to the common carrier is treated as delivery to the purchaser, there is delivery in fact and in its popular sense only when the purchaser obtains possession of the goods and it is this that is connoted by the words 'actual delivery' ......................It must accordingly be held that the expression 'actual delivery' in the Explanation to Article 286(1)(a) means delivery of the goods to the purchaser or his agent and delivery to the common carrier is not actual delivery." The goods sold by the assessee to persons outside t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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