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Report No. 61

No specific entry in the Constitution relating to taxes on sales or purchases in the course of export or import.- It may not be out of place to mention here that there is no specific entry in any of the three Lists in the Seventh Schedule to the Constitution under which Parliament has the power to make law with respect to taxes on sales or purchases of goods taking place outside a State or in the course of import or export although Parliament may exercise such power under Article 248 read with residuary entry 97 of the Union List. No such law has, however, been enacted by Parliament.

The position therefore is that at present there is no parliamentary law with respect to taxes on these two categories of sales and purchases and the Legislature of a State has no power at all in relation to these cases because powers of the States have been expressly taken away by Article 286(1). Therefore, when in accordance with the principles formulated by Parliament in section 4 and section 5 of the Central Sales Tax Act, 1956, any sale or purchase of goods is a sale or purchase taking place outside a State or a sale or purchase taking place in the course of import or export, such a sale or purchase is not taxable at all under any law at present. The Central Sales Tax Act, 1956 provides only for the imposition of taxes on inter-State sales or purchases under Chapter III of the Central Sales Tax Act, 1956. It may be mentioned here that "goods" as defined in the Act do not include newspapers.



Certain Problems connected with Powers of the States to Levy a Tax on the Sale of Goods and with the Central Sales Tax Act, 1956 Back




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