Section 4 in THE CONSTITUTION (SIXTH AMENDMENT) ACT, 1956
4. Amendment of article 286.-
In article 286 of the Constitution,-(a)in clause (1), the Explanation shall be omitted; and(b)for clauses (2) and (3), the following clauses shall be substituted, namely:-(2)Parliament may by law formulate principles for determining when a sale or purchase of goods takes place in any of the ways mentioned in clause (1).(3)Any law of a State shall, in so far as it imposes or authorises the imposition of, a tax on the sale or purchase of goods declared by Parliament by law to be of special importance in inter-State trade or commerce, be subject to such restrictions and conditions in regard to the system of levy, rates and other incidents of the tax as Parliament may by law specify.[The Constitution (Sixth Amendment) Act, 1956, changed Articles 269, 286, and also to the 7th schedule of the Constitution of India. The Bill was then considered and passed by the Lok Sabha on 29 May 1956. It grants Parliament the power to set the criteria for determining when a sale or purchase of goods occurs in the context of interstate trade or commerce. This addition includes a new entry, 92-A, which makes taxation of interstate sales a matter for the Union. As a result, the exclusive legislative and executive power of the Union now extends to include taxes on inter-state sales and purchases of items other than newspapers, which have also been subjected to taxation. Important Verdict: Bengal Immunity Co. Ltd. vs State Of Bihar And Ors , The State Of Bombay And Another vs The United Motors (India)Ltd & Also Refer ]
