M/S. WILLIAM JACKS & CO. LTD. versus THE STATE OF BIHAR

Citation: [1963] SUPP. 2 S.C.R. 352 · Decided: 21-11-1962 · Supreme Court of India · Bench: S.K. DAS · Disposal: Appeal(s) allowed

Judgment (excerpt)

1962 
352 SUPREME COURT REPORTS [1963) SUPP. 
M/S. WILLIAM JACKS & CO. LTD. 
v. 
THE ST ATE OF BIHAR 
(S. K. DAS, J. L. KAPUR, A. K. SARKAR, 
M. HIDAYATULLAH and RAGHUBAR DAYALJJ.) 
Saks Pa:x:-8ak8 in the ooum of inter-state tra&-pro-
perty passed in Calcutta-Actual delivery given to purchaser 
in Bihar far consumption-whether taz could be levied under 
Bihar Act-Whether the Bales Pa:x: Continuance Order, 195J 
saves 8Uch taz-Deftnitian of sale in the Bihar Sales Paz 
Act-Whether the sale wmea within lhed,,ftnition-Canstitution 
of India, Art. 206 (1) and (2), Bihar Bales Pa:x: 
Act, 1947 
(Bihar 19 of 1947) ss. 25, 33-Pke Bale.< Paz Continuance 
Order, 1950-Phe Sales Paz Laws Validation Act, 1956 
(VII of 1956). 
Between January 26, 1950, and September 30, 1951, 
the appellant had sold from Calcutta various goods to parties 
in Bihar. These sales had been made in the course of inter-
State trade and were of species mentioned in the explanation 
to cl. (I) of Art. 286 of the Constitution on which, in view of 
the provisions of cl. (2) of that Article as it stood then and as 
interpreted by this Court in Bengal Immunity Co. Ltd. v. 
State of Bihar, no tax could be imposed by a State law. The 
respondent State had however before the decision by this 
Court in the Bengal Immunity Co. case imposed tax on these 
sales under the Bihar Sales Tax Act, 1947, relying on other dec-
isions since overruled which interpreted the explanations to 
Art. 286 (I} in a different manner. The appellant objected to this 
imposition. 
On the question being referred to the High Court the 
rtspondent sought to justify the tax on other grounds. It 
contended that the sales made between January 26, 1950, and 
March 31, 1951, could be legally taxed under the Act because 
of cl. (2) of the Sales Tax Continuance Order, 1950, made 
under the proviso to Art. 286 (2) of the Conslitution and the 
sales made between April I, )951, and September 30, 1951, 
could he "° taxed because of the provisions of the Sales Tax 
Validation Act, 
1956. The High 
Court accepted the 
respondents' contention. On appeal to this Court the decision 
oftheHighCourtregarding the sales between April I, 1951, 
and September 30, 1951, was not challenged. 
2 S.C.R. 
SUPREME COURT REPORTS 
353 
Held, the Sales Tax Continuance Order of 1950 only 
1962 
authorised the continuation after the commencement of the 
M 1,. William 1..,11 
of the Constitution and up to March 31, 1951, of "any tax 
Iii Co. Lid. 
on the sale or purchase of goods which was being lawfully 
y, 
levied by the Government of any State immediately before the n. Si.11 •I 81/uJr 
commencement of the Constitution" notwithstanding the bar 
imposed against such imposition by Art. 286 (2) of the. Consti• 
tution. The tax on the sales made by the appellant between 
January 26, 1950, and March 31, 1951, were not of the variety 
which was immediately before the commencement of the Con· 
stilution being lawfully levied by any law of the State of Bihar. 
The contention of the respondent that the sale defined in the 
Act included these sales and were therefore being taxed U11.dcr 
it from beforeJanuary 26, 1950, was not tenable. 
Section 33 of the Act read with the decision of thi1 
Court in M. P. V. Sundararamier di Oo . . v. TTt• Slate of Andhra 
Praduh might on the ban under Art. 236 being lifted be 
construed as authorising the imposition of a tax on these sales 
does not affect the question in the present case for this section 
was introduced into the Act by the adaptation of Laws (Third 
Amendment) Order, 
1951, and came 
into force from 
January 26, 1950, and could not thereforebe a law levying a 
tax immediately before the commencement of the Constitution. 
M. P. V. 
Sund~raramier di Oo v. TM State of Andhra 
Pradesh, (1958] S. C. R. 1422 considered 
CIVIL APPELLATE JuRISDIOTION : Civil Appeal 
Nos. 112 to 113 of 1962. 
Appeal from the judgment and order dated 
September 21, 1959, of the Patna High Court in 
Civil Misc. Judi. Case No. 593 of 1957. 
Rajeshwur Prasad and R. P. Verma, for the 
appellant. 
A. V. Viswanatha Ra,•tri, D. P. ,Singh R. K. 
G·1rg, R. 0. Agarwal an:!. M. K. &mamurthi, for the 
respondent. 
1962. November 21. The Judgment of the 
Court was delivered by 
. 
. SAR~AR, J;-The appellant is a company deal-
mg m various kmds of machinery. It has its place 
M/1. Willianl lt1tb 
IY C.. Ud. 
•• 
Tiu S111" of BiMr 
354 SUPREME COURT REPORTS [1963] SUPP. 
of business in Calcutta, in the State of West Benga

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