Report No. 61

2.13. Taxation on consignment not within present Act.-

Taxation of mere consignments is not also within the scheme of the present Central Sales Tax Act. That Act is relatable to taxes on the sale or purchase of goods (other than newspapers), where such sale or purchase takes place in the course of inter-State trade or commerce1. The Act is intended to be administered as a complementary piece of legislation to the State Sales Tax Act2. The constitutional provision relating3, inter alia, to taxes on the sale or purchase of goods (other than newspapers) in the course of inter-State trade or commerce, is also limited to 'sale' in the strict sense.

1. See also para. 2.30, et seq, infra.

2. Cf. sections 7(2), 9(2) and 9(3), Central Sales Tax Act, 1956.

3. Constitution, Articles 269(1)(g) and 269(2).