 the sales-tax laws validation bill, 1956(as introduced in lolc sabha)  th'e sales-tax laws validation bill, 1956 (as introduced in lok sabha) a billto validate laws of states imposing, or authorising the imposition of, taxes on the sale or purchase of goods in the course of inter-state trade or commerce be it enacted by parliament in the seventh year of the republic of india as follows:-1 this act may be called the sales-tax laws validation act, short tide 1956 s 10 z notwithstanding any judgment, decree or order of any court, validation no law of a state imposing, or authorising the imposition of, a tax rfws ~~~ on the sale or purchase of any goods where such sale or purchase ing, ~~ took place in the course of inter-state trade or commerce during the ~h:h:=,­period between the 1st day of april, 1951, and the 6th day of septem- tion of taxes ber, 1955, shall be deemed to be invalid or ever to have been in'-"lid ~~rch~ ~r merely by reason of the fact that such sale or purchase took place goods in th~ in the course of inter-state trade or commerce; and all such taxes ~~~~tate°f levied or collected' or purporting to have been levied or collected trade or comduring the aforesaid period shall be deemed always to have been mercc validly levied or collected in accordance with law is explanation-in this section, 'law of a state' in relation to a state specified in part c of the first schedule to the constitution, means any law made by the legislative assembly, if any of that state or extended to that state by a notification issued under section 2 of the part c states (laws) act, 1950 20 30 of j9sc 3 the sales-tax laws validation ordinance, 1956, is hereby repeal of repealed ~~~¢ce 3  statement of objects and reasonsin the case of the bengal immunity co ltd, vb the state of bihar and others (1955) scj 672, the supreme court has so construed article 286 of the constitution that no law of a state imposing, or authorising the imposition of, a tax on the sale or purchase of any goods in the course of inter-state trade or commerce can be valid unless -parliament by law removes the restrictions imposed by cla\lse (2) of that article on such state law as there was no such law made by parliament, this decision given on the 6th september, 1955, over-ruling an earlier decision of the supreme court on the same subject, has the effect of making it illegal for state governments to levy and collect such taxes under their laws and doubts have been cast on the legality of the levy and collection of such taxes already made before that date in order to remove all difficulties arising in connection with the levy of such taxes, a suitable amendment of article 286 of the constitution in the light of the recommendations of the taxation enquiry commission is under considerttion of the central government pending such amendment of the constitution, it is not considered desit:able to validate the existing state laws prospectively but it became necessary to take immediate steps to validate the levy and collection of such taxes between 1st april, 1951 and 6th september, 1955 to achieve this object, the sales-tax laws validation ordinance, 1956 (3 of 1956) was promulgated on the 30th january, 1956 this bill merely seeks to replace the ordinance by an act of parliament c d deshmukh new delm; the 9th februaray, 1956 a bill to validate laws of states imposing, or authorising the imposition of, taxes on tbe sale or purchase of goods in lie course of inter-state trade or commerce the president has, in pursuance of clause (i) of article 117 of the constitution of india, recommended to lok sabba the introduction of the bill mn kaul, secretary (shn' c d deshmukh, minister of fintlnce) gipd-lad-i931 ls-16-2-56-1600 