HIRJI KALYANJI WADERA Vs. STATE OF MAHARASHTRA

JUDGEMENT

(1.) This order will govern the disposal of all the three references made by the Sales Tax Tribunal, Bombay, in respect of the same assessee Shri Hirji Kalyanji, at whose instance identical questions of law have been referred to this Court.

(2.) The petitioner Hirji Kalyanji does business of supplying and selling bidi leaves to purchasers who were dealers outside the then State of Madhya Pradesh. The petitioner was doing business at Gondia, and the chargeable accounting periods out of which the references arise are : (1) from 7-11-1953 to 26-10-1954; (2) from 27-10-1954 to 14-11-1955; and (3) from 15-11-1955 to 2-11-1956.

(3.) The references in this order are to paper-books in Sales Tax References Nos. 8 of 1964, 3 of 1964 and 4 of 1964. In Sales Tax Reference No. 8 of 1964 common orders have been passed by the authorities. The Sales Tax Officer, who was the primary assessing authority, determined the total turnover at Rs. 3,43,475 after having increased the returned turnover by 10 per cent. From this the officer deducted for that year sales to registered dealers and also sales by way of export under section 27A of the C.P. and Berar Sales Tax Act, 1947. In respect of this latter category of deduction, sales amounting to Rs. 1,20,943 were deducted. For the next chargeable accounting period the Sales Tax Officer determined the sales liable to deduction by way of export amounting to Rs. 2,13,502 and for the last period, the officer determined sales amounting to Rs. 3,18,052 as export sales. Though the words "export sales" have been used by the Sales Tax Officer, in fact the reference is to sales outside the State of Madhya Pradesh, which were claimed as beyond the taxing power of the State on account of the provisions of Article 286(1)(a), read with Explanation to clause (1) of the Constitution.