Grover, J. - (1.) The common question on which the disposal of these two appeals by special leave depends relates to the applicability of Article 286 of the Constitution of India read with Art. 264 before the amendments made by the Constitution (VIIth Amendment) Act, 1956 to the erstwhile State of Vindhya Pradesh during the relevant assessment period for the purpose of imposition of Sales Tax.
(2.) The respondent firm manufactures and deals in bidis having head office at Maihar which was a part of the erstwhile United States of Vindhya Pradesh. The Rajpramukh promulgated the Vindhya Pradesh Sales Tax Ordinance No. II of 1949 for the levy of a tax on sales of goods in Vindhya Pradesh. After Vindhya Pradesh had been included in the list of Part C States in the Schedule in the Constitution the aforesaid Ordinance was applied to the whole of Vindhya Pradesh with effect from April 1, 1950 by a notification No. 2 March 28, 1950. The Parliament passed the Part C States (Laws) Act 1950. Section 2 of that Act authorised the Central Government to extend any enactment to Part C States, which was in force in Part A States by a notification in the official gazette with power to repeal and amend any corresponding law. In exercise of that power, the Central Government by a notification dated December 29, 1950 extended to the State of Vindhya Pradesh the Central Provinces and Berar Sales Tax Act, 1947 as was in force in the old State of Madhya Pradesh subject to certain modifications. By that notification a new Section was added to the C. P. and Berar Sales Tax Act, 1947. The newly added Section 29 provided for the repeal and saving and the Vindhya Pradesh Sales Tax Ordinance No. II of 1949 was repealed. On March 20, 1951, the Central Government issued a notification in exercise of the powers conferred under sub-section (3) of Section 1 of the C. P. and Berar Sales Tax Act, 1947 as extended to the State of Vindhya Pradesh ordering that, from April 1, 1951, the extended Act would come into force in the State of Vindhya Pradesh. Thereafter the Parliament passed the Government of Part C States Act, 1951. In view of the decision of this Court in Delhi Laws Act case, (1951) SCR 747 the Part C States (Miscellaneous Law Repealing Act, (Act LXVI of 1951) was enacted by Parliament on October 31, 1951. By Section 2 of that Act Laws declared in column 2 of its Schedule were repealed or deemed to have been repealed with effect from the dates specified in the corresponding entry in column 3 of that Schedule. In the Schedule the Vindhya Pradesh Sales Tax Ordinance II of 1949 was repealed from December 29, 1950. The Vindhya Pradesh Legislative Assembly also passed the Vindhya Pradesh Laws (Validating) Act 1952 (Act VI of 1952). Section 2 of that Act provided that C. P. and Berar Sales Tax Act, 1947 would be deemed to be in force in Vindhya Pradesh from April 1, 1951. This entire history of legislation relating to the sales tax in the erstwhile State of Vindhya Pradesh has been given because the periods of assessments involved in both the appeals are from April 1, 1950 to June 30, 1950 and July 1, 1950 to December 31, 1950 and January 1,1951 to March 31, 1951.
(3.) The relevant facts in C. A. 619/66 need only be stated. In respect of the period of assessment from April 1, 1950 to June 30, 1950 the respondent claimed that it was not liable to tax in respect of the sales of bidis of the value of Rs. 31,059-12-0 as the bidis sold were delivered outside the State of Vindhya Pradesh for consumption and that the transactions of the dispatches of bidis of the value of Rs, 4,01,255-4-0 from its head office at Maihar to its branches in U. P. were not sale transactions but were merely transfer of goods from the head office to its branches and could not be assessed to sales tax in view of the provisions of Article 286 of the Constitution. The Assistant Commissioner of Sales Tax of Rewa rejected the first claim of the assessee. It is unnecessary to give details of the decisions by the various departmental authorities, but the main controversy before them, as before the Sales Tax Tribunal which was the Board of Revenue, centered on the applicability of Article 286 of the Constitution to the former State of Vindhya Pradesh. It was held by the Tribunal that Article 286 was applicable. In the other appeal i.e. C. A. 628/66, also the same question arose. Certain questions of law were framed in both the cases and referred to the High Court by the tribunal. These questions need not be mentioned because in the present appeals it is common ground that the decision of the appeals would hinge on the point whether Article 286 applied to Part C States. It may be mentioned that the High Court had agreed with the tribunal that the said Article was applicable. If that view is affirmed it is not disputed that both the appeals will have to be dismissed.;