ORDER : - The petitioner, Messrs. Kanpur Oil Mills, Harrisganj, Kanpur, is a firm carrying on the business of manufacturing oils and dealing in them. During the assessment year 1949-50, the firm filed returns for assessment of sales tax under the U.P. Sales Tax Act and an order of assessment was passed by the Sales Tax Officer, Kanpur, on 28th February, 1951. Amongst sales effected by the petitioner were certain transactions in which the purchasers belong to places outside the State of Uttar Pradesh and delivery of goods was also effected to them outside the State of Uttar Pradesh. In a number of cases, the goods, which were sent by rail, were booked by the petitioner, showing itself as the consignee of the goods. Thereafter, in some cases, the railway receipts were sent to the purchasers through the banks and, in some cases, direct to the purchasers.

The Sales Tax Officer, when making the assessment, exempted from tax the turn-over in respect of all sales in which the railway receipts were sent to the purchasers through the banks, holding that, in those cases, delivery had taken place outside the State of Uttar Pradesh and the amount of turnover was not liable to sales tax. He, however, held that in respect of sales amounting to Rs.1,55,073/-, in which the railway receipts were sent direct to the purchasers, the property in the goods passed to the purchasers within U.P. even though actual delivery took place outside Uttar Pradesh. He was of the view that these sales must be held to have taken place inside U.P. and, consequently, were subject to the U.P. Sales Tax. The petitioner filed an appeal before the Judge (Appeals), Sales Tax, Kanpur Range. The learned Judge (Appeals) upheld the decision of the Sales Tax Officer and dismissed the appeal. In deciding the appeal, the learned Judge held:

"The admitted facts are that goods worth Rs.1,55,073/- were actually delivered outside the Province but the transaction of sale was complete within U.P. The contract was entered into in U.P. The goods were delivered in U.P. on payment of the price. The question of actual delivery, as contemplated by Art.286 of the Indian Constitution, shall only arise in the case of sales outside the State. The place of sale has got to be determined in accordance with the Sale of Goods Act. In this case, the contract was entered into within this Province. The price was paid within this Province. The delivery of goods was made within this Province and as such, under the provisions of the Sale of Goods Act, the sale shall be deemed to have taken place within this Province. The sales within this Province are outside the scope of Art.286(1) of the Indian Constitution. Such sales, as were dismissed (?) in this case, shall be considered to be in the nature of inter-State trade and commerce and they shall continue to be taxed upto 31-3-51 in accordance with G.O. No.7 (Continuance Order)."

This petition has been filed under Art.226 of the Constitution by the petitioner, challenging this order of the Judge (Appeals), Sales Tax, on the ground that the sales under Art.286(1) of the Constitution must be deemed to have taken place outside the State of Uttar Pradesh in respect of this amount of Rs.1,55,073/- and the learned Judges judgment is based on an error apparent on the face of the record and is liable to be quashed in this respect by issue of a writ of certiorari.

2. It does appear that the learned Judge, in applying Art.286 of the Constitution, did not fully comprehend the scope of its various clauses. Clause (1) of Art.286 of the Constitution lays down:

"286(1): No law of a State shall impose, or authorise the imposition of, a tax on the sale or purchase of goods where such sale or purchase takes place-

(a) Outside the State; or

(b) .........................."

Clause (2) of that section is as follows:

"286(2): Except in so far as Parliament may by law otherwise provide no law of a State shall impose, or authorise the imposition of, a tax on the sale or purchase of any

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