Law: Sales Tax Act, (III of 1951)

Section:

Sales Tax Act (III of 1951)-------   ----Valid legislation-Federal Legislature's power to legislate on subject of sales tax limited in time, to 31-3-1952 at, time of passing of Sales Tax Act (III of 1951) - Such power subsequently becoming indefinite in regard to time-Act continues to be operative after 31-3-1952 Re-enactment of provisions of Act not necessaryGovernment of India Act, 1935, Seventh Schedule, Provincial List, Entry No. 48, Federal List, Entry No. 54-B-Government of India (Amendment) Act, 1948- Government of India (Fourth Amendment) Act, 1950 Government of India (Amendment) Act, 1952-[Government of India Act, 1935, S. 102--Taxation of Goods (Sales and Purchases) Order, 1960-Application doubtful to circumstances of case] [The Province of East Pakistan v. Muhammad Mehdi Ali Khan P L D 1959 S C (Pak.) 387 inapplicable]. JUDGMENT MANZUR QADIR, C. J.-At the conclusion of the arguments, we pronounced the following short oral order :   "For reasons to be given later, we hold that the Sales Tax Act (Act III of 1951) was, has been and continues to be a valid piece of legislation, and the taxes levied under that Act are valid. This petition is dismissed with costs."   We now proceed to give those reasons.   A demand in respect of sales tax had been made from the petitioner after the 31st ofMarch 1952 under the Sales Tax Act, 1951 (Act III of 1951).   It is contended on behalf of the petitioner that the Sales Tax Act of 1951 ceased to bea valid piece of legislation on the 31st of March 1952 and all impositions, demands or collections of tax under that Act after that date are illegal.   The circumstances on which this contention is based are these. Originally taxes onthe sale of goods were included in the Provincial List in the Seventh Schedule to the Govern ment of India Act, 1935, under Entry No. 48. In 1948, by the Government of India (Amendment) Act, 1948, the words " the sale of goods and on " were omitted from that Entry and a new Entry under a new number 54-B "Taxes on the sale of goods" was inserted in the Federal Legislative List in that Schedule. The insertion of this Entry, however,…