MOOTHAM, J. - (1.) THIS is a petition under Article 226 of the Constitution.
(2.) THE petitioner is a private limited company which has its head office in Calcutta and branches at various places in India, including Kanpur. It carries on the business of importing and selling dyes, chemicals, plastics and other similar goods. During the assessment year ending the 31st March, 1954, the petitioner's products were sold to buyers in Uttar Pradesh both by its Kanpur branch and by its branches at Bombay and Madras and its head office in Calcutta. The Sales Tax Officer, Kanpur, by an assessment order dated the 28th July, 1955, has assessed the petitioner to sales tax in the sum of Rs. 2,426-11-6 on the turnover of sales effected outside Uttar Pradesh of goods supplied to buyers in Uttar Pradesh.
(3.) THE petitioner now challenges the validity of this assessment on the ground that as the sales took place outside this State they cannot, under Article 286(1) of the Constitution, be subject to tax. For the State it is contended that as the goods old were actually delivered in Uttar Pradesh as a direct result of such sales for the purpose of consumption therein the assessment is valid. Article 286(1) as it stood in 1954 provided that :- "286. (1) No law of a State shall impose, or authorise the imposition of, a tax on the sale or purchase of goods where such sale or purchase takes place - (a) outside the State; or (b) ......................... Explanation - For the purposes of sub-clause (a), a sale or purchase shall be deemed to have taken place in the State in which the goods have actually been delivered as a direct result of such sale or purchase for the purpose of consumption in that State, notwithstanding the fact that under the general law relating to sale of goods the property in the goods has by reason of such sale or purchase passed in another State." ;