DEPUTY COMMISSIONEE OF SALES TAX BANGALORE DIVISION BANGALORE Vs. TOBACCO MANUFACTURERS INDIA RESPONDENT LTD
HIGH COURT OF KARNATAKA
DEPUTY COMMISSIONEE OF SALES TAX, BANGALORE DIVISION, BANGALORE
TOBACCO MANUFACTURERS (INDIA)) RESPONDENT LTD. FRASER TOWN, BANGALORE
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(1.)Under Section 16 (1) of the Mysore Sales Tax Act the Deputy Commissioner has referred to this Court at the instance of the assessee the following questions for decision : 1. Whether the sale of the value of Rs. 5,76,70,424-7-5 during the three quarters ending December 1960 was not complete as per explanation 2 clause (i) sub-clause (a) of section 2 of Mysore Sales Tax Act which was in force in 1950-51 and which reads as follows :" Notwithstanding anything to the contrary in the Sales of Goods Act 1939 the sale or purchase of any goods shall be deemed for the purpose of this Act, to have taken place in Mysore, wherever the contract of sale might have been made (a) if the goods were actually in Mysore at the time when the contract of sales or purchase in respect thereof was made " and hence whether such sales being complete in Mysore do not attract Mysore Sales Tax.
(2.)Whether the petitioner is not liable to Sales Tax on the said quantity of tobacco and cigarettes of the total value of Rs. 5,76,70,424-7-5 which were sold and exported outside the State of Mysore for the purposes of consumption outside the State under clause (2) of Article 286 of the Constitution of India under the Sales Tax continuance order of the President issued in October 1950 stating inter alia that the tax on the sale or purchase of goods which was being lawfully levied by the Government of any State immediately before the commencement of the Constitution of India shall until 31st March 1951 continue to be levied notwithstanding that the imposition of such tax is contrary to the provisions of clause (2) of Article 286 of the Constitution as such sales take place in the course of Inter-State trade or commerce as contemplated in clause (2) of the said Article.
(3.)The assessee is a company having its registered office in the Isle of Man and carrying on business of manufacturing cigarettes and other tobacco goods in Bangalore and other places in India. Part of the goods manufactured in Bangalore is sold and consumed within this State and part of these is sold and exported and consumed outside the State.
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