Then I put the original proposition moved by Dr. Ambedkar. The question is:
“That in amendment No. 307 of List XIII (Second Week), for the proposed article 264A, the following be substituted–Restrictions as to imposition of tax on the sale of purchase of goods.’264-A. (1) No law of a State shall impose or authorise the imposition of, a tax on the sale or purchaseof goods where such sale or purchase takes place–(a) outside the State; or(b) in the course of the import of the goods into, or export of the goods out of, the territory of India.Explanation.–For the purposes of sub-clause (a) of this clause a sale or purchase shall be deemed to have taken place in the State in which the goods have actually been delivered as a direct result of such sale or purchase for the purpose of consumption in that State, notwithstanding the fact that under the general law relating to sale of goods the property in the goods has by reason of such sale or purchase passed in another State.(2) Except in so far as Parliament may by law otherwise provide, no law of a State shall impose, or authorise, the imposition of, a tax on the sale or purchase of any goods where such sale or purchase takes place in the course of inter-State trade or commerce.Provided that the President may by order direct that any tax on the sale or purchase of goods which was being lawfully levied by the Government of any State immediately before the commencement of this Constitution shall, notwithstanding that the imposition of such tax is contrary to the provisions of this clause, continue to be levied until the thirty-first day of March, 1951.(3) No law made by the Legislature of a State imposing, or authorising the imposition of, a tax on the sale or purchase of any such goods as have been declared by Parliament by law to be essential for the life of the community shall have effect unless it has been reserved for the consideration of the President and has received his assent.'”
(The amendment was adopted.)
(Article 264-A, as amended, was added to the Constitution.)