- (1.) These appeals are brought by special leave from the judgment of the orissa High court dated April 22, 1964, in Special Jurisdiction Cases Nos. 27 to 33 of 1963.
(2.) The appellant is a public limited company incorporated in the United Kingdom which has its head office in London and its principal office in India at 16, Netaji Subash Road, Calcutta. During the relevant period, i. e. , from 1/10/1953, to 30/06/1955, the appellant which is a dealer in machineries, tools and machine parts had supplied these goods to individual consumers and government departments including the Hirakud Dam Project authorities in orissa. The respondent had not levied any sales tax on these transactions till the decision of this court in State of Bombay v. United Motors (India) Ltd. pronounced on 30/03/1953. In that decision it was held by this court that by virtue of the explanation to article 286 (l) (a) of the Constitution, as it existed before the Sixth Amendment, the State where the goods were actually delivered as a direct result of sale or purchase for the purpose of consumption, was the State which had the jurisdiction to tax such sales irrespective of the fact that the transfer of property took place in a different State. Some time after this decision was pronounced, the government of orissa issued a press note on 5/06/1954, which stated as follows : "It is notified for information of all ex-orissa dealers who are engaged in the business of selling goods in the State of orissa within the meaning of the 'explanation' to article 286 (l) (a) of the Constitution that consequent upon the Supreme court judgment in the case of State of Bombay v. United Motors (India) Ltd. pronounced on 30/03/1953, all such dealers are liable to pay tax to the State of orissa at the rates prescribed under the orissa Sales Tax Act and the Rules framed thereunder on all sales as a result of which goods are actually delivered in the State of orissa for the purpose of consumption in this State. It has been decided by the orissa State government that tax shall be levied on all such sales effected on or after the 1st day of April, 1953. "
(3.) Two years later, i. e. , on 6/09/1955, this court pronounced the judgment in Bengal Immunity Co. Ltd. v. State of Bihar reversing itsprevious judgment in the United Motors case. It was held by this court that the bans provided for in clauses (1) , (2) and (3) of article 286 of the Constitution were distinct and independent of each other and the "explanation sales" were not taxable in the State where the goods were delivered for consumption. Thereafter the government of orissa issued a second press note on 2/11/1955, which was published in the orissa Gazette No. 44 of 1955 which stated: "It is notified for the information of all concerned that the levy of sales tax from non-resident businessmen outside the territory of the State of orissa who are engaged in the business of selling goods in the State of orissa within the meaning of the 'explanation' to article 286 (l) (a) of the Constitution of India, has been suspended with immediate effect. ";