Vol. 13 · pages 1141–1145

to call the leader of the Opposition to form an alternative Ministry. On the advice of the British Government, the Governor-General accepted the advice of Mr. Mackenzie King and dissolved the Parliament. Shri H. V. Kamath : Instead of Dr. Ambedkar’s obiter dictum why not have a Constitutional provision ? The Honourable Dr. B. R. Ambedkar : We cannot discuss this question in this way. [Amendment No. 360 mentioned earlier of Mr. T. T. Krishnamachari was adopted. Clause (5a) of Article 62 was omitted.] ARTICLE 303 *The Honourable Shri K. Santhanam : May I enquire whether a person, who has lost his State by merger in a province continues to be a Ruler or he has become successor ? Shri T. T. Krishnamachari : The whole difficulty is, this is rather intricate. It is baffling. I admit that a person who has lost his State is nevertheless a Ruler, under the definition in (nn), and also for the purpose of article 267-A. The Honourable Shri K. Santhanam : Why not his son also be a Ruler ? Shri T. T. Krishnamachari : Might be. The Honourable Dr. B. R. Ambedkar : If I may say so, this definition of Ruler is intended only for the limited purpose of making payments out of the privy purse. It has no other reference at all. The Honourable Shri K. Santhanam : My point is whether it will be so construed as to mean two people at the same time entitled to the allowances. I want to ensure that at a time there will be only one person who will be entitled under the covenant to receive payment. Mr. President: I think that is just secured by this, because the person recognised as the Ruler alone will be entitled to the payment. The Honourable Dr. B. R. Ambedkar : That would be governed by the provisions regarding recognition. I am sure the President is not going to recognise two or three or four persons. This expression is deliberately used in order to give the power to the President. The Honourable Shri K. Santhanam : He might be called the Ruler or successor. Mr. President : Mr. Santhanam, I think that is quite clear. ...I do not suppose any further discussion is necessary. I shall put it to vote. [The amendment of Shri T. T. Krishnamachari to substitute sub-clause (nn) of clause (1) of Article 303 was adopted.] *CAD, Vol. X, 14th October 1949, p. 282. 1108 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES

*Mr. President : We then go to the Schedule. ... FIRST SCHEDULE The Honourable Dr. B. R. Ambedkar : Sir, I move : “That for the First Schedule the following be substituted :— “FIRST SCHEDULE” (ARTICLES 1 AND 4) THE STATES AND THE TERRITORIES OF INDIA PART I Names of States Names of corresponding Provinces 1. Assam Assam 2. Bengal West Bengal 3. Bihar Bihar 4. Bombay Bombay 5. Koshal-Vidarbha Central Provinces and Berar 6. Madras Madras 7. Orissa Orissa 8. Punjab East Punjab 9. United provinces. United Provinces. TERRITORIES OF STATES The territory of the State of Assam shall comprise the territories which immediately before the commencement of this Constitution were comprised in the province of Assam, the Khasi States and the Assam Tribal Areas. The territory of the State of Bengal shall comprise the territory which immediately before the commencement of this Constitution was comprised in the Province of West Bengal.” Shri B. Das (Orissa : General) : We wanted Utkal to be the name of ORISSA. The Honourable Dr. B. R. Ambedkar : You may move an amendment. “The territory of the State of Bombay shall comprise the territory which immediately before the commencement of this Constitution was comprised in the Province of Bombay and the territories which by virtue of an order made under section 290A of the Government of India Act, 1935, were immediately before such commencement being administered as if they formed part of that Province or which immediately before such commencement were being administered by the Government of that Province under the provisions of the Extra-Provincial Jurisdiction Act. 1947. The territory of each of the other States shall comprise the territories which immediately before the commencement of this constitution were comprised in the corresponding Province and the territories which, by virtue of an order made under section 290A of the Government of India Act, 1935, were immediately before such commencement being administered as if they formed part of that Province. *CAD, Vol. X, 14th October 1949, pp. 286-288. 1109DRAFT CONSTITUTION

PART II. Names of States. 1. Ajmer 2. Bhopal 3. Bilaspur 4. Coorg 5. Cooch-Behar 6. Delhi 7. Himachal Pradesh 8. Kutch 9. Manipur 10. Rampur 11. Tripura TERRITORIES OF STATES The territory of the State of Ajmer shall comprise the territories which immediately before the commencement of this Constitution were comprised in the Chief Commissioner’s Provinces of Ajmer-Merwara and Panth Piploda. The territory of each of the States of Coorg and Delhi shall comprise the territory which immediately before the commencement of this Constitution was comprised in the Chief Commissioner’s Province of the same name. The territory of each of the other States shall comprise the territories which, by virtue of an order made under section 290 A of the Government of India Act, 1935, were immediately, before the commencement of this Constitution administered as if they were a Chief Commissioner’s Province of the same name. PART III. Names of States. 1. Hyderabad 2. Jammu and Kashmir 3. Madhya Bharat 4. Mysore 5. Patiala & East Punjab States Union 6. Rajasthan 7. Saurashtra 8. Travancore-Cochin 9. Vindhya Pradesh TERRITORIES OF STATES The territory of the State of Rajasthan shall comprise the territories which immediately before the commencement of this Constitution were comprised in the United State of Rajasthan and the territories which immediately before such commencement were being administered by the Government of that State under the provisions of the Extra-Provincial Jurisdiction Act, 1947. The territory of the State of Saurashtra shall comprise the territories which immediately before the commencement of this Constitution were comprised in the United States of Kathiawar (Saurashtra) and the territories which immediately before such commencement were being administered by the Government of that State under the provisions of the Extra-Provincial Jurisdiction Act, 1947. The territory of each of the other states shall comprise the territory which immediately before the commencement of this Constitution was comprised in the corresponding Indian State. 1110 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES

PART IV The Andaman and Nicobar Islands.” Sir, I do not think the amendment which I have moved calls for any explanation. Shri Jainarain Vyas : I would like to know if Sirohi State has been put in anywhere. The Honourable Dr. B. R. Ambedkar : Sirohi, I understand is administered under the Extra-Provincial Jurisdiction Act, 1947, partly by Bombay and partly by Rajasthan. That is the reason why it has not been separately mentioned. ***** ARTICLE 264A *The Honourable Dr. B. R. Ambedkar (Bombay: General) : Sir, I move amendment No. 425. “That in amendment No. 307 of List XIII (Second Week), for the proposed article 264A the following be substituted :— ‘264A. (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— (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.’ ” *CAD, Vol. X, 16th October 1949, pp. 325-327. Restriction as to imposition of tax on Sale or purchase of goods. 1111DRAFT CONSTITUTION

Sir, as everyone knows, the sales tax has created a great deal of difficulty throughout India in the matter of freedom of trade and commerce. It has been found that the very many sales taxes which are levied by the various Provincial Governments either cut into goods which are the subject matter of imports or exports, or cut into what is called inter-State trade or commerce. It is agreed that this kind of chaos ought not to be allowed and that while the provinces may be free to levy the sales tax there ought to be some regulations whereby the sales tax levied by the provinces would be confined within the legitimate limits which are intended to be covered by the sales tax. It is, therefore, felt that there ought to be some specific provisions laying down certain limitations on the power of the provinces to levy sales tax. The first thing that I would like to point out to the House is that there are certain provisions in this article 264A which are merely reproductions of the different parts of the Constitution. For instance, in sub-clause (1) of article 264A as proposed by me, sub-clause (b) is merely a reproduction of the article contained in the Constitution, the entry in the Legislative List that taxation of imports and exports shall be the exclusive province of the Central Government. Consequently so far as sub-clause (1)(b) is concerned there cannot be any dispute that this is in any sense an invasion of the right of provinces to levy as sales tax. Similarly, sub-clause (2) is merely a reproduction of Part XA which we recently passed dealing with provisions regarding inter-State trade and commerce. Therefore so far as sub-clause (2) is concerned there is really nothing new in it. It merely says that it any sales tax is imposed it shall not be in conflict with the provisions of Part XA. With regard to sub-clause (3) it has also been agreed that there are certain commodities which are so essential for the life of the community throughout India that they should not be subject to sales tax by the province in which they are to be found. Therefore it was felt that if there was any such article which was essential for the life of the community throughout India, then it is necessary that, before the province concerned levies any tax upon such a commodity, the law made by the province should have the assent of the President so that it would be possible for the President and the Central Government to see that no hardship is created by the particular levy proposed by a particular province. The proviso to sub-clause (2) is also important and the attention of the House might be drawn to it. It is quite true that some of the sales taxes which have been levied by the provinces do not quite conform to the 1112 DR. BABASAHEB AMBEDKAR : WRITINGS AND SPEECHES