Satyanarayana Rao, J.-

The assessee, Messrs. Louis Dreyfus & Company Ltd., was assessed to sales-tax for the assessment year, 1948-49, including in its turnover a sum of Rs.5,53,746-5-6 which represents the value of Niger seeds shipped by the assessee to places outside the territory of Indian Union in pursuance of contracts entered into by their London office.

The assessment was based upon Explanation 2 to section 2(h) of the Sales Tax Act, which was added by the Madras General Sales Tax (Amending) Act, 1947 (Act XXV of 1947). The basis on which the tax was levied under this Explanation was that the goods were actually in this State at the time of the contracts of sale. If the assessment has to be made after the Constitution came into force, probably the assessee would have been exempt from the payment of the tax under Article 286, of the Constitution. But, as the assessment year was before that date, the Department and the Tribunal upheld the assessment under the new Explanation, Explanation 2 to section 2(h), which was added by the Amending Act of 1947.

Before the Amendment, tax could not have been imposed unless the sale was completed within the State of Madras, that is unless the

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