Shah, J. - (1.) In these six appeals, the constitutional validity of S. 2(g) of the Bihar Sales Tax Act XIX of 1947 as amended by the Bihar sales Tax (Amendment Act) VI of 1949 is challenged.
(2.) To appreciate the grounds on which the contention is raised by the appellants, it is necessary to set out the legislative provisions applicable to the sales in respect of which tax was sought to be levied by the State of Bihar under the Bihar Sales Tax Act, 1947. In exercise of the legislative power conferred by entry 48 in List II of the Government of India Act, 1935, the Legislature of the province of Bihar enacted the Bihar Sales tax Act XIX of 1947, which was brought into operation on July 1, 1947. The Act was amended by Bihar Sales Tax (Amendment) Act VI of 1949. Section 4(1) of the Act (which is the charging section) as amended, provided, in so far as it is material, that: "Subject to the provisions of Ss. 5, 6, 7 and 8 and with effect from the commencement of this Act, every dealer whose turnover during the year immediately preceding the date of such commencement, on sales which have taken place both in and outside Bihar exceeded Rs. 10,000/- shall be liable to pay tax under this Act on sales which have taken place in Bihar on and from the date of such commencement".
(3.) Section 2(g) defined "sale" as meaning "with all grammatical variations and cognate expressions, any transfer of property in goods for cash or deferred payment or other valuable consideration, including a transfer of property in goods involved in the execution of contract, but does not include a mortgage, charge or pledge: Provided ********** Provided further that notwithstanding anything to the contrary in the India Sale of Goods Act, 1930 (Act III of 1930), the sale of any goods - 1. which are actually in Bihar at the time when, in respect thereof, the contract of sale as defined in S. 4 of that Act is made, or 2. which are produced or manufactured in Bihar by the producer or manufacturer thereof, shall, wherever the delivery or contract of sale is made, be deemed for the purposes of this Act to have taken place in Bihar.";