CAPCO LIMITED Vs. SALES TAX OFFICER

JUDGEMENT

(1.) THIS is a petition under Article 226 of the Constitution.

(2.) THE petitioner is a private limited company which has its head office in Calcutta and branches at various places in India, including Kanpur. It carries on the business of importing and selling dyes, chemicals, plastics and other similar goods. During the assessment year ending the 31st March, 1954, the petitioner's products were sold to buyers in Uttar Pradesh both by its Kanpur branch and by its branches at Bombay and Madras and its head office in Calcutta.

(3.) THE petitioner now challenges the validity of this assessment on the ground that as the sales took place outside this State they cannot, under Article 286(1) of the Constitution, be subject to tax. For the State it is contended that as the goods old were actually delivered in Uttar Pradesh as a direct result of such sales for the purpose of consumption therein the assessment is valid. Article 286(1) as it stood in 1954 provided that :-