M/S. WILLIAM JACKS & CO. LTD. vs THE STATE OF BIHAR

The Supreme Court held that the Sales Tax Continuance Order, 1950, did not authorize the imposition of sales tax on inter-State sales made between January 26, 1950, and March 31, 1951, as these sales were not lawfully taxed by Bihar prior to the Constitution's commencement. The Court clarified that the definition of sale under the Bihar Sales Tax Act did not encompass these transactions, and thus the tax imposed was invalid. The appeal was allowed, overturning the High Court's decision regarding the applicability of the tax for the specified period.