Report No. 30
37. Central Sales Tax Act, 1956.-
While the matter was under consideration of the Law Commission, the amendment to the Constitution had already been passed. After the submission of the Report of the Law Commission, the Central Sales Tax Bill, 1955 was introduced, and duly enacted1.
Two provisions in the Act of 1956 are relevant; section 3, which deals with sales or purchase in the course of inter-State trade and commerce, and section 5, which deals with sales or purchases taking place in the course of import or export. These two provisions incorporate the recommendations of the Law Commission2, and are as follows.-
"Section 3. A sale or purchase of goods shall be deemed to take place in the course of inter-State trade or commerce only if the sale or purchas.-
(a) occasions the movement of goods from one State to another; or
(b) is effected by a transfer of documents of title to the goods during their movement from one State to another.
Explanation 1.........
Explanation 2.........
"5. Section 5. (1) A sale or purchase of goods shall be deemed to take place in the course of the export of the goods out of the territory of India only if the sale or purchase either occasions such export or is effected by a transfer of the title to the goods after the goods have crossed the customs frontier of India.
(2) A sale or purchase of goods shall be deemed to take place in the course of the import of the goods into the territory of India only if the sale or purchase either occasions such import or is effected by a transfer of documents of title to the goods before the goods have crossed the customs frontiers of India."
1. Central Sales Tax Act, 1956 (74 of 1956).
1. Para. 36, supra.
Back
