HIMMATLAL HARILAL MEHTA Vs. STATE OF MADHYA PRADESH

JUDGEMENT

(1.) This is an appeal by leave from a judgment of the High Court of Judicature at Nagpur dated 25-4-1952 dismissing a petition under Art. 226 of the Constitution of India filed by the appellant questioning the 'vires' of certain provisions of the Central Provinces and Berar Sales Tax Act, 1947.

(2.) The appellant represents a concern C. Parakh and Company (India) Limited, a company registered under the Indian Companies Act, 1913, having its head office at Bombay, and several branches in the State of Madhya Pradesh. The main business of the appellant company is that of cotton.

(3.) Under the central Provinces and Berar Sales Tax Act, 1947 (Act 21 of 1947), cotton was declared liable to sales tax on 11-4-1949, and since that date the appellant commenced paying the tax in respect of the purchases made by it, and continued to pay it till 31-12-1950. For the quarter ending on 31-3-1951 the appellant declined to pay the tax in respect of the purchases made during that quaterr, realizing that it could not be made legally liable for the payment of this tax in the State of Madhya Pradesh, the transactions done or effected in Madhya Pradesh not being "sales" within that State.