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(e) It must not also contravene the specific provisions of the Constitution which impose limitation on legislative power relating to particular matters, e.g., articles 27, 276(2), 286, 301.

(f) The tax in question must be authorised by such valid law."

The word tax would include any "impost' - general, special or local duties, cess or fees.

10. It was further said that under article 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 -
(b) a tax on the sale or purchase of goods, being a tax of the nature referred to in sub-clause (b), sub-clause (c) or sub-clause (d) of clause (29-A) of article 366, 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."

No doubt, under entry 54, List II the State has power to impose taxes on sale or purchase of goods other than newspapers. But under entry 92A, List I, tax on imports and exports are exclusive Union subjects. Article 286 is intended to ensure that sales tax imposed by the States do not interfere with imports and inter-State trade and commerce, which are matters of national concern, and the taxation of which is beyond the competence of the State. Certain limitations have been imposed upon the power of the State to enact sales legislation and they are :

(a) No tax shall be imposed on sale or purchase which takes place outside that State [C1. (1)(a)].
(b) No tax shall be imposed on sale or purchase which takes place in the course of import into or export out of India [C1. (1)(b)].

11. Clause (1)(b) of article 286 prevents a State from levying sales tax so as to interfere with the Union's legislative power with respect to import and export across customs frontiers (entry 41, List I) and duties of customs including export duties (entry 83 of List I). Reliance was placed upon the decision in State of Travancore-Cochin v. Shanmugha Vilas Cashew-nut Factory [1953] 4 STC 205 (SC); [1954] SCR 53 where it was held that :

The prohibitions in sub-clauses (a) and (b) of article 286 are independent and these will have to be surmounted before a State can impose tax on the sale or purchase of goods.

12. Section 5 of the Central Sales Tax Act, 1956 enacted in pursuance of the power conferred by amended clause (2) of article 286 lays down the principles for determining when a sale or purchase takes place in the course of import or export and says that :

"(1) omitted.
(2) A sale or purchase of goods shall be deemed to take place in the course of the import of the goods into the territory of India only if the sale or purchase either occasions such import or is effected by a transfer of documents of title to the goods before the goods have crossed the customs frontiers of India."