Sale & Tax - Assessments Made by Superintendent of Taxes - Appeals Rejected by Assistant Commissioner of Taxes - Revisions Rejected by Commissioner of Taxes, Assam - No Reference to High Court Demanded Although Provided for in the Assam Sales Tax Act, 1947 - Writ Petitions Filed in High Court Under Article 226 - Effect - Scheme of the Act - Tax on Sales Whether Ultra Vires - When New Points Other Than Those on Which Certificate Was Granted by the High Court Can Be Raised in Supreme Court - Extent of Jurisdiction of High Court Under Article 226 - Constitution of India, Article 226 - Assam Sales Tax Act, 1947 (Act 17 of 1947) - Explanation to Section 2(12)

The appellants, who are merchants engaged in business as dealers in jute in Calcutta, submitted returns of turnover for the purpose of sales tax due under the Assam Sales Tax Act, 1947. However, as they did not comply with the requisition of the Superintendent of Taxes to produce their books, the latter made a "best judgment assessment" under Section 17(4) of the Act. Their appeals to the Assistant Commissioner of Taxes and revision petitions to the Commissioner of Taxes, Assam, were dismissed. The appellants then moved the High Court of Assam by petitions under Article 226, contending that the explanation to Section 2(12) of the Act was ultra vires the Assam Legislature and that the tax could not be levied on sales irrespective of the place where the contracts were made. They also argued that the finding of the Commissioner—that the goods were actually in the State of Assam at the time when the contract was made—was based on mere speculation. The writ petitions were dismissed by the High Court, and the appellants appealed to the Supreme Court with a certificate under Article 132(1) of the Constitution. Before the Supreme Court, the appellants applied for leave under Article 132(3) of the Constitution to challenge the correctness of the High Court's decision that the goods were, in fact, within the State of Assam when the contracts were made.