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TMI Blog1963 (11) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... essment period, 1st November, 1951, to 31st March, 1952, and also for the financial years 1952-53 and 1953-54 returns of sales made by the Delhi office were filed with the assessing authority. It appears, however, that during that period certain sales had been made direct by the head office in Calcutta and also by some of the branches outside Delhi to certain parties in Delhi and, in consequence, the goods were actually sent to Delhi for consumption in Delhi. The assessing authority required that returns concerning all those sales should also be submitted and when those were submitted, the sales were added to the turnover of the Delhi branch and assessment made. The assessee objected to that course claiming that the sales made by the head o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 2 to section 2(g), and the total effect of the two provisions is that no sales tax can be levied on sales taking place in the course of inter-State trade under the law as in force in Delhi? (3) Whether the Sales Tax Laws Validation Act, 1956, is of assistance in protecting any provision authorising the imposition of a tax on sales or purchases taking place in the course of inter-State trade or commerce?" It is agreed before us that the Sales Tax Laws Validation Act, 1956, is a valid piece of legislation, and the only question is whether it does validate the imposition of sales tax on the sales in dispute. Section 2 of the Sales Tax Laws Validation Act, 1956, which is really the only provision in it, says this"2. Notwithstanding any jud ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ax) Act defines "sale" in section 2 as "any transfer of property in goods for money consideration and includes a transfer of property in goods supplied in the execution of a contract", and to this definition is added an Explanation which says: "Explanation 2.-A sale shall be deemed to have taken place in the State of Delhi if the goods are actually delivered in the State of Delhi as a direct result of such sale for the purpose of consumption in the State of Delhi, notwithstanding the fact that under the general law relating to the sale of goods the property in the goods has by reason of such sale passed in another State." Stopping here for a moment it is clear that the Act makes every sale, in consequence of which the goods sold are actua ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is that section 27 nullifies the effect of the definition of "sale" in section 2(g) of the Act and that is how the second question referred to us has arisen. It is, however, difficult to agree with learned counsel's submission. Apart from any other consideration, it seems to me hardly reasonable to think that the Legislature, having provided for the imposition of sales tax on inter-State sales by defining "sale" in a particular way under section 2(g), later intended to nullify the effect of that provision, but that is not the only reason for my inability to accept the submission, as a main reading of the two provisions does not reveal any conflict. Section 2(g) tells us what a "sale" is and further tells as through its Explanation 2 that ce ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to section 2(g) of the Act should have been enacted as an Explanation to section 27 and then alone could the position have been, as claimed by the taxing authority. He relies for this on certain observations of the Supreme Court in Sundararamier and Co. v. State of Andhra Pradesh [1958] 9 S.T.C. 298; A.I.R. 1958 S.C. 468. That case was concerned with the interpretation of the Madras General Sales Tax Act in which "sale" was defined under section 2(h), but there was no Explanation added to the definition, while another section of the Act, namely, section 22, contained an Explanation similar in terms to the Explanation to the definition of "sale" in the present case. It was contended before the Supreme Court that the Explanation should have ..... X X X X Extracts X X X X X X X X Extracts X X X X
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