BHARAT HEAVY ELECTRICIAL LIMITED Vs. UNION OF INDIA

JUDGEMENT

(1.) Leave granted in the special Leave Petitions.

(2.) The Constitution (Sixth Amendment) Act, 1956 recast Article 286 of the Constitution almost in its entirety. It inserted sub-clause (g) in clause (1) of Article 269 and introduced clause (3) in Article 269. The Constitution (Forty-sixth Amendment) Act, 1982 substituted clause (3) of Article 286. As amended by Sixty and Forty-sixth Amendment Acts, Article 286 reads:

(3.) Clause (1) places a restriction upon the power of the State Legislatures to levy taxes on sale or purchase of goods; a State cannot levy tax on a sale which takes place outside that State nor can it tax a sale or purchase taking place in the course of import into or export out of India. Clause (2) empowers the Parliament to formulate principles for determining when a sale takes place outside a State or in the course of import or export, as the case may be. Clause (3) places certain restrictions on the State Legislatures in the matter of system of levy and rate etc. in respect of certain goods and transactions.