DULICHAND HARDWARI MULL Vs. STATE OF BIHAR

JUDGEMENT

(1.) In this case the petitioner Dulichand Harwari Mull is a firm which carried on business at Nirmali in the district of Saharsa. The petitioner firm is registered under the Bihar Sales Tax Act in the district of Darbhanga and bears registration certificate No. DR 68. For the period from the 1st of April, 1959, to the 3oth of June, 1959, the petitioner was assessed to sales tax by the Superintendent of Sales Tax, Darbhanga Circle, on the 22nd February, 1960. The petitioner claimed before the Superintendent of Sales Tax that the sale of goods made to customers in Nepal to the extent of Rs. 50,015.55 nP. should be exempted from assessment of sales tax, but the claim of the petitioner was rejected by the Superintendent of Sales Tax. The relevant portion of the order of the Superintendent of Sales Tax reads as follows:-

(2.) The petitioner has moved the High Court under Article 227 of the Constitution for setting aside the order of the Superintendent of Sales Tax on this point and for making a fresh assessment in accordance with law.

(3.) On behalf of the petitioner the argument is put forward that the Superintendent of Sales Tax had no legal authority to impose tax on the transaction of sale between the assessee and his customers in Nepal to the extent of Rs. 50,015/-and odd because of the constitutional bar imposed under Article 286 (1) (b) of the Constitution, which is to the following effect: -