RAJAGOPALAN, J.

These proceedings related to the assessment year 1950-51, when the President's Sales Tax Continuance Order, 1950, was in force. The only item of the assessee's turnover, with which we need concern ourselves at this stage is what was dealt with as the "second item" by the Tribunal, sales of machinery etc., to buyers outside the State, the turnover of which was Rs. 3, 02, 639-3-0. The contention of the assessee was that these were sales which fell within the scope of explanation to Article 286(1)(a) of the Constitution, and that, as the machinery in question had been sold in the course of inter-State trade to persons residing outside the State for consumption in those States, those sales could not be taxed within the State of Madras, nor could they be treated as intra-State sales, as far as Madras State was concerned. Even in the proceedings before the Tribunal, the assessee produced certain affidavits, which no doubt covered only a portion of the disputed turnover, in support of his contention, that the machinery had been sold to buyers in the States outside Madras State for the purpose of consumption in those States, that is, the buyers' States.

The Tribun