Judgment

B. P. JEEVAN REDDY, J.:- Leave granted in the Special Leave Petition. In Goodyear India Limited v State of Haryana, (1990) 2 SCC 71, a Bench of this Court comprising Sabyasachi Mukharji and S. Ranganathan, JJ. declared Section 9(l)(b) of the Haryana General Sales Tax Act, 1973 ultra vires the powers of the State Legislature insofar as it imposed tax to the despatch of goods outside the territory of the State. It was held that "the tax and despatch of goods outside the territory of the State certainly is in the course of Inter-State trade or commerce and, in other words, amounts to imposition of consignment tax". Section 9(1)(b) levied purchase tax on goods purchased by a dealer who used them in the manufacture of other goods and disposed of such manufactured goods to a place outside the place in any manner otherwise than by way of sale in the course of inter-State trade or commerce or in the course of export outside the territory of India within the meaning of sub-section (1) of Section 5 of the Central Sales Tax Act, 1956. The said tax was also leviable in a case where the manufactured goods were disposed of within the States otherwise than by way of sale in the State. Sec