JANARTHANAM, J.

The exigibility to tax on goods, moved from one State - say, from the State of Tamil Nadu - to another, is the subject-matter of challenge, in all these actions. Such a challenge emerges in various hues and colours, about which, I will have the occasion to mention or specify, at the appropriate place. In order to understand the gravity and magnitude of such a challenge, better it is, I feel, to refer to or trace, in a short compass, the legislative history thereof.

2. Article 246 of the Constitution of India (for short "the Constitution") deals with the subject-matter of laws made by Parliament and the Legislatures of States. This Article, by way of elaboration it may be said, deals with

"distribution of legislative powers as between Union and State Legislatures, with reference to different Lists in the Seventh Schedule"

The gist of this article is that Union Parliament has full and exclusive power to legislate with respect to matters in List I, and has also power to legislate with respect to matters in List III. The State Legislature, on the other hand, has exclusive power to legislate with respect to matters in State List II minus matters falling in Lists I and III and has concurrent power, with respect to matters included in List III. It is to be noted here that the distribution, as between Union and States, of legislative power, as is being provided for under article 246, is conferred by article 245.

3. Article 245(1) prescribes :

"Subject to the provisions of this Constitution, Parliament may make laws for the whole or any part of the territory of India, and the Legislature of a State may make laws for the whole or any part of the State."

4. Article 245(2) provides :

" No law made by Parliament shall be deemed to be invalid on the ground that it would have extra-territorial operation."

5. Article 246 therefore must have to be read as,

" Subject to the other provisions of the Constitution".

The legislative powers of the Legislatures of Union and States, thus being limited by the provisions, relating to distribution of powers and other mandatory limitations, imposed by different provisions of the Constitution, a law passed without legislative competence is a nullity ab initio and nothing can be done to cure that law. Even subsequent amendment to the Constitution cannot confer jurisdiction upon the Legislature with retrospective effect so as to validate that law, unless that amendment is given retrospective effect.

6. Under entry 92 of List I of the Seventh Schedule to the Constitution, Union is empowered to enact legislations providing for,

"taxes on the sale or purchase of newspapers and on advertisements published therein".

7. By section2 of the Constitution (Sixth Amendment) Act, 1956, entry 92-A of List I of the Seventh Schedule had been inserted, enlarging the scope of legislative power of the Union and the said entry reads :

"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 commerce."*

8. Correspondingly, the legislative powers of the States had been curtailed by the substitution of entry 54 of List II of the Seventh Schedule and the said substituted entry reads :

"Taxes on the sale or purchase of goods other than newspapers, subject to the provisions of entry 92-A of List I."

By section3 of the aforesaid Amendment Act, in article 269, which deals with "taxes levied and collected by the Union, but assigned to the States", sub-clause (g) to clause (1) had been inserted and it is couched in the following terms :

"269(1). The following duties and taxes shall be levied and collected by the Government of India but shall be assigned to the States in the manner provided in clause (2), namely :-

(a) to (f) ..............

(g) 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 commerce."*

9. Subsequent to the aforesaid Amendment Act, enla