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PETITIONER: THE TATA IRON & STEEL CO., LTD.
Vs.
RESPONDENT: THE STATE OF BIHAR
DATE OF JUDGMENT: 19/02/1958
BENCH: DAS, SUDHI RANJAN (CJ) BENCH: DAS, SUDHI RANJAN (CJ) AIYYAR, T.L. VENKATARAMA DAS, S.K. SARKAR, A.K. BOSE, VIVIAN
CITATION: 1958 AIR 452 1958 SCR 1355
ACT: Sales Tax-Provincial legislation imposing tax in certain circumstances-Validity-Power of Provincial Legislature- Retrospective levy, legality of-Theory of territorial nexus, if applicable Bihar Sales Tax Act, 1947 (No. XIX of 1947) as amended by Bihar Sales Tax (Amendment) Act, 1948 (VI of 1949), ss. 4(1), 2(g).
HEADNOTE: The appellant company, carrying on business as manufacturer of iron and steel, with its factory and works at Jamshedpur in Bihar, was assessed to sales tax for two periods prior to the Constitution, under the Bihar Sales Tax Act, 1947 (No. XIX Of 1947), enacted by the Bihar Legislature in exercise of its exclusive power under the Government of India Act, 1935. The company used to send its goods from Jamshedpur to various parts of India. In the railway receipt the company itself figured as the consignee, it paid the freight and the receipt was sent either to its branch offices or bankers to be handed over to the purchaser when he paid the price. From the amounts shown as gross turn-over in the two returns for the two periods, the company claimed deduction of certain amo...