BENGAL TIMBER TRADING CO LIMITED CALCUTTA Vs. COMMISSIONER OF SALES TAX MADHYA PRADESH INDORE IN ALL APPEALS

JUDGEMENT

(1.) These are three appeals by leave granted by this Court from orders of reference under S. 44(1) of the Madhya Pradesh General Sales Tax Act, 1958 at the in" stance of the Commissioner of Sales Tax, Madhya Pradesh to the High Court in that State. The question in each of the references was, whether, in the facts and circumstances of the case, the, sales of sleepers (for railways) made by the non-applicant (Bengal Timber Trading Co. Ltd.) under the agreement with the President of India came under Art. 286(1)(a) of the Constitution read with the Explanation thereto and therefore were exempt from the imposition of tax under the C. P. and Berar Sales Tax Act, 1947

(2.) Except for the amounts which varied from year to year involved in the sales, the facts and circumstances were common in all the three cases. The periods for which tax was sought to be imposed were from 1st July 1950 to 30th June 1951, from 1st Ju1y 1951 to 30th June 1959 and from 1st July 1952 to 30th June 1953. It will be noted that ah the three periods are prior to the amendment of Art. 286 of the Constitution by the Constitution (Sixth Amendment) Act, 1956. The relevant portion of Art. 286 as it stood during the years in question read as follows:

(3.) The last mentioned case was considered by this Court in Singareni Collieries Co. Ltd. vs. Commr. of Commercial Taxes Hyderabad (1966) 2 SCR 190 at page No. 200 and it was held: