BHARAT SUGAR MILLS LIMITED THE TATA IRON AND STEEL CO LIMITED DEBIJHORA TEA CO LIMITED C AND E MORTON INDIA LIMITED Vs. STATE OF BIHAR

JUDGEMENT

(1.) In these six appeals, the constitutional validity of S. 2(g) of the Bihar Sales Tax Act XIX of 1947 as amended by the Bihar sales Tax (Amendment Act) VI of 1949 is challenged.

(2.) To appreciate the grounds on which the contention is raised by the appellants, it is necessary to set out the legislative provisions applicable to the sales in respect of which tax was sought to be levied by the State of Bihar under the Bihar Sales Tax Act, 1947. In exercise of the legislative power conferred by entry 48 in List II of the Government of India Act, 1935, the Legislature of the province of Bihar enacted the Bihar Sales tax Act XIX of 1947, which was brought into operation on July 1, 1947. The Act was amended by Bihar Sales Tax (Amendment) Act VI of 1949. Section 4(1) of the Act (which is the charging section) as amended, provided, in so far as it is material, that:

(3.) Section 2(g) defined "sale" as meaning "with all grammatical variations and cognate expressions, any transfer of property in goods for cash or deferred payment or other valuable consideration, including a transfer of property in goods involved in the execution of contract, but does not include a mortgage, charge or pledge: