D.N.SINHA, J. - (1.) THIS application and a number of other applications involve the question of inter -State trade and commerce and the imposition of sales -tax in respect thereof by the State. They all involve a further question about the applicability to such transactions of a Central Act, namely, the Sales -tax Laws Validation Act, 1956 being Act No. VII of 1956. These cases have been heard together and common sets of argument were advanced. This particular case, however, has some special features inasmuch as (1) it is not an instance of what has been called an 'explanation sale', and (2) no point has been taken herein about any violation of the petitioner's fundamental rights under Article 19(1)(g) of the Constitution. It will be convenient, therefore, to deal with this case separately, but decide herein also the common questions of law involved. So far as the other matters are concerned, they are all instances of 'explanation sales'. They also involve the point of an infraction of Article 19(1)(g) of the Constitution. These additional points will be dealt with in separate judgments, but it will not be necessary therein to decide once again the common points of law.
(2.) THE facts in the present case are briefly as follows : The petitioner in this case is the Indian Standard Wagon Co. Ltd., a company incorporated under the Indian Companies Act. This company and Messrs. Burn and Co. Ltd. are well -known companies, having their registered offices situate in Calcutta and having a common managing agent, namely, Messrs. Martin Burn Ltd. Both these companies manufacture railway rolling stock including wagons, and have been doing so for a long number of years. On or about July 2, 1951 the Railway Board placed an order with Messrs. Martin Burn Ltd. as managing agents of the two companies mentioned above, for 3500 Indian Railway Standard Broad Gauge 4 -wheeled covered wagons 'C. R.' type, against its programme for the year 1952 -53. A copy of tin's order is Ex. 'A' to the petition. The following terms in the order are of importance : '(4). Delivery F.O.R. Your work siding is required to be completed by 31 -3 -53. (6) Accounting and payments : The F. A. and C. A. O., E. I. Rly. will maintain accounts and arrange all payments. It may, however, be noted that no payments against this order will be made before 1 -4 -1952. (8) If and when sales tax becomes payable, such payment when made will not be on your account.'
(3.) THERE was a request that the acceptance of the order might be communicated to the Railway Board, New Delhi, at an early date. This order placed by the Railway Board was accepted by Messrs. Martin Burn Ltd. by their letter dated July 28, 1951. This letter starts by thanking the Director, Railway Board, for the formal orders, inter alia, of 3,500 'C. R.' type wagons, and intimates the acceptance of the terms and conditions. Certain special points have been made clear in the letter, but it is nobody's case that the terms were not agreed upon. In the letter it has been stated that the 'C. R.' type wagons have been allocated between Messrs. Burn and Co., Ltd. and Messrs. J. S. W. Co. Ltd., the former being entrusted with the manufacture of 1,700 wagons and the latter with 1,800 wagons. In the present case, we are concerned with 1,800 wagons which were allocated to the petitioner company. It is not disputed that the letter of acceptance was posted in Calcutta.;