Judgment

HIDAYATULLAH. J. : These six petitions under Art. 32 of the Constitution have been filed by one Bhaiyalal Shukla who was doing business of construction of buildings, roads, bridges etc. as contractor for the Public Works Depart in Rewa Circle of the former Vindhay Pradesh State, now a part of the State of Madhya Pradesh. By these petitions, he challenges the levy of sales tax on building materials supplied by him in the construction of buildings, roads and bridges for the years,1953-54 to 1958-59. For the first year in question, sales tax amounting to Rs. 1,840-5-0 has already been charged and paid. He seeks refund of this amount. For the remaining years except the last two, proceedings for assessment have been completed, but the amounts have not been paid. For the remaining two years, proceedings are pending for assessment of the tax. The respondents in the case are the State of Madhya Pradesh which stands substituted for the State of Vindhya Pradesh and diverse officers connected with the assessment and levy of the tax. The contention of the petitioner is that the tax is not leviable in view of the decisions of this Court in two cases reported in State of Madras v. Gannon Dunkerley and Co. (Madras) Ltd., 1959 SCR 379 and Banarsidas v. State of Madhya Pradesh 1959 SCR 427 The respondents, however, claim that the tax is leviable, because the case falls within the decision of this Court reported in Mithan Lal v. State of Delhi, 1959 SCR 445

2. The United State of Vindhya Pradesh was formed by the Rulers of the States in Baghelkhand and Bundhelkhand, who agreed to unite into a common State with the Maharaja of Rewa as the Rajpramukh. By the Covenant which was entered into by them at that time, it was provided that until a Constitution for the United State was formed, the legislative authority of the United State would vest in the Rajpramukh, and he was authorised to make and promulgate Ordinances for the peace and good government of the United State or any part thereof, and any Ordinance made by him had the force of an Act passed by the legislature of the United State.

3. The Rajpramukh, in exercise of his powers drawn from the Covenant, promulgatetl the Vindhya Pradesh Sales Tax Ordinance 2 of 1949 for the levy of a tax on the sale of goods in Vindhya Pradesh. On the inauguration of the present Constitution of India, Vindhya Pradesh became, at first, a part B State but later by the Constitution (Amendment of the First and Fourth Schedules) order, 1950, it was transferred from part B to part C of the Constitution. The Ordinance of type Rajpramukh was applied to the whole of Vindhya Pradesh with effect from April 1, 1951, by Notification No. 7 of March 28, 1950 by the Chief Commissioner, Vindhya Pradesh acting under S. 1 (2) of the Ordinance.

4. Parliament then passed the Part C States (Laws) Act, 1950. Section 2 of that Act provided :

"Power to extend enactments to certain Part C States :- The Central Government may, by notification in the Official Gazette, extend to any Part C State.......... or to any part of such State, with such restrictions and modifications as it thinks fit, any enactment which is in force in a Part A State at the date of the notification and provision may be made in any enactment so extended for the repeal or amendment of any corresponding law (other than a Central Act) which is for the time being applicable to that Part C State."

In exercise of the power conferred by the above section, the Central Government by Notification No. S.R.O. 6 dated December 29, 1950, extended to the State of Vindhya Pradesh the Central Provinces and Berar Sales Tax Act, 1947 (21 of 1947) as in force for the time being in the State of Madhya Pradesh, subject to certain modification necessitated by the application of the Act to this new area. By the same Notification, a new section was added to the Madhya Pradesh Act, which read us follows :

"29. Repeal and Saving : The Vindhya Pradesh Sales Tax Ordinance 2 of 1949 is hereby