The Central Provinces and Berar Sales Tax Act was not applicable to the former States of Raigarh and Maihar during the assessment period, and therefore, the despatches of chironji and harra from these States to places outside the Central Provinces and Berar were not liable to be taxed under the Act.

H. R. KAMATH, PRESIDENT. - The only question for decision is whether the despatches of chironji worth Rs. 22,219-8-3 and of harra worth Rs. 3,374-5-3 made by the applicant during the assessment period 13th November, 1947, to 31st October, 1948, from the former States of Raigarh and Maihar to Bombay and certain places in the United Provinces (as the area was known at the time) were sales liable to be taxed under the Central Provinces and Berar Sales Tax Act. The applicant lost his case, as the stand that he took, namely, that the consignees were his pakka adatias was not accepted by the departmental authorities. A very important aspect of the case, however, seems to have escaped the attention of every one concerned so far; and this I proceed to state below.

2. The former State of Maihar was at no time a part of the Central Provinces and Berar, nor is it now a part of the State of Madhya Pradesh. As regards the former State of Raigarh, the position is not quite so simple.

3. Section 2(7) of the Central Provinces General Clauses Act, as amended up-to-date by the Adaptation Order of 1950, defines "Central Provinces" as follows :-

"'Central Provinces' shall mean the territories, excluding Berar, which before the 15th day of August, 1947, were under the administration of the Chief Commissioner or the Governor of the Central Provinces or the Governor of the Central Provinces and Berar."

Now, before the 15th August, 1947, the former State of Raigarh and certain other States - all of which came to be called the C.P. States - were not even remotely or indirectly under the administration of the Governor of the Central Provinces and Berar. Certain jurisdiction in respect of them was delegated to the Provincial Government for the first time by the Central Government by virtue of the Ministry of States Notification No. 112-IB, dated 23rd December, 1947, issued in exercise of the powers conferred by the Extra-Provincial Jurisdiction Act, 1947, (XLVII of 1947). In exercise of the jurisdiction delegated, the Provincial Government arranged for the administration of these States by promulgating an Order known as the Central Provinces States (Administration) Order, 1947, which came into force on 1st January, 1948. The next development in regard to these States was the promulgation of an Order by the Governor-General known as the States' Merger (Governors' Provinces) Order, 1949, which came into force on 1st August, 1949, and according to which the States were to be administered in all respects, as if they formed part of the province, and they also came to be defined as "Merged States". The position created by this Order continued till the 26th January, 1950, when, according to the First Schedule appended to the Constitution, the State of Madhya Pradesh was defined as comprising not only the territories formerly comprised in the province of Central Provinces and Berar, but also the territories which, by virtue of the States' Merger (Governors' Provinces) Order of 1949, were being administered, as if they formed part of the Province.

4. It will be clear from what has been stated above that the Central Provinces States (including Raigarh) were separate entitles - and not part of the Central Provinces and Berar, until in fact that provincial unit as such ceased to be on 26th January, 1950. From 1st January, 1948, to 1st August, 1949, the Provincial Government exercised certain delegated jurisdiction in respect of these States the original jurisdiction all the time vesting in the Central Government. From 1st August, 1949, till 26th January, 1950, they were administered by the Government of the Central Provinces and Berar, as if they formed part of the Central Provinces and Berar - which meant clearly that they did not, in fact, form part of that province.

5. One further point also deserves consideration. Although the Provincial Government acquired certain delegated jurisdiction on 1st January, 1948, it was not until 1st February, 1949, that the