STATE TRADING CORPORATION OF INDIA LTD. versus STATE OF MYSORE

STATE TRADING CORPORATION OF INDIA LTD. versus STATE OF MYSORE

The sales under permits required supply from factories outside Mysore, making the movement of goods from another State to Mysore the result of a covenant in the contracts. Hence, these sales were inter-State sales under s.3(a) of the Central Sales Tax Act, 1956, which could not be taxed by the State in light of Article 269 of the Constitution.

Parties
Petitioner: State Trading Corporation of India Ltd.; Petitioner: Cement Marketing Company of India Ltd.; Respondent: State of Mysore; Respondent: R. Gopalakrishnan; Respondent: P. D. Memon
Jurisdiction
India
Judgment Date
28 August 1962
Procedural Posture
Original Petition / Final Determination
Outcome
petitions allowed
Legal Topics
Inter State Sales, Sales Tax, Fundamental Rights, Jurisdiction of Taxing Authority
Constitutional Law Taxation Law Inter State Sales Sales Tax Fundamental Rights Jurisdiction of Taxing Authority

Case Brief

Summary, issues, holding and outcome

More case intelligence is available

Unlock the full research layer for this judgment.

Full judgment text Legal principles 2 Authorities cited 4 Party arguments 2
Sign in to unlock

Parties

State Trading Corporation of India Ltd.

Petitioner

Cement Marketing Company of India Ltd.

Petitioner

State of Mysore

Respondent

R. Gopalakrishnan

Respondent

P. D. Memon

Respondent

Procedural Posture

Original Petition / Final Determination

Legal Issues

  1. 1 Whether sales made to purchasers within Mysore from factories outside Mysore are inter-State sales under s.3 of the Central Sales Tax Act, 1956
  2. 2 Whether the State of Mysore had the jurisdiction to levy sales tax on such sales

Ratio Decidendi

The sales under permits required supply from factories outside Mysore, making the movement of goods from another State to Mysore the result of a covenant in the contracts. Hence, these sales were inter-State sales under s.3(a) of the Central Sales Tax Act, 1956, which could not be taxed by the State in light of Article 269 of the Constitution.

Court Disposition

petitions allowed

Orders

  • Appropriate writs to be issued quashing the assessment orders mentioned in the petitions.
  • Respondents restrained from levying or collecting sales tax in respect of sales mentioned in the petitions where goods moved from outside into Mysore.