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Therefore, it will follow that so long as these limitations are not transgressed, should it be a case of intra-State sale that could be the subject-matter of State sales tax.

Clause (29-A) of article 366 of the Constitution speaks of tax on the sale or purchase of goods. It reads :

"(29-A) 'tax on the sale or purchase of goods' includes -

(a) a tax on the transfer, otherwise than in pursuance of a contract, of property in any goods for cash, deferred payment or other valuable consideration;

(b) a tax on the transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

(c) a tax on the delivery of goods on hire purchase or any system of payment by instalments;

(d) a tax on the transfer of the right to use any goods for any purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;

(e) a tax on the supply of goods by any unincorporated association or body of persons to a member thereof for cash, deferred payment or other valuable consideration;

(i) a transfer otherwise than in pursuance of a contract of property in any goods for cash, deferred payment or other valuable consideration;

(ii) a transfer of property in goods (whether as goods or in some other form) involved in the execution of a works contract;

(iii) a delivery of goods on hire-purchase or any system of payment by instalments;

(iv) a transfer of the right to use any goods for purpose (whether or not for a specified period) for cash, deferred payment or other valuable consideration;

In opposing this stand Mr. Achar, learned Government Advocate, would say that the State has the power to tax on such transfer of right to use the goods irrespective of where the contract has taken place or not. In support of this submission reliance is placed on 20th Century Finance Corporation Limited v. State of Maharastra [1989] 75 STC 217 (Bom). In that case, the validity of the Maharashtra Sales Tax on the Transfer of the Right to use any goods for any purpose Act, 1985, came up for consideration. The object of that Act was to levy and collect sales tax upon the transfer of the right to use any goods for the purposes of cash or deferred payment or other valuable consideration within the State. In upholding the constitutional validity of that Act it was held as follows (at pages 226 and 227) :