Export sales after Form XVII purchases did not trigger purchase-turnover tax under settled Section 3(4) principle

Export sales of finished goods manufactured from raw materials purchased against Form XVII declarations were held not to attract purchase-turnover tax under Section 3(4) of the Tamil Nadu General Sales Tax Act, 1959, where the dealer effected only export sales and did not transfer the goods to another State or to a branch or agent there. The Court applied the earlier binding ruling in Tube Investment of India Ltd. and treated the controversy as covered by that ratio. On that basis, it found no substantial question of law arose, and the Department's revisions failed.

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Issues: Whether export sales of finished goods by a manufacturer who purchased raw materials against Form XVII declarations attracted tax on the purchase turnover under Section 3(4) of the Tamil Nadu General Sales Tax Act, 1959.

Analysis: The assessment related to purchase of raw materials against Form XVII declarations and subsequent export of the finished goods. The Tribunal had followed the binding decision of the Court in Tube Investment of India Ltd. and held that where the dealer effected only export sales and did not transfer the goods to another State or to its own branch or agent in another State, liability under Section 3(4) did not arise. In these revisions, the Department accepted that the controversy was covered by that earlier decision, and the Court found that the same ratio applied to the present cases. On that basis, the Court held that no substantial question of law arose for consideration.

Conclusion: Export sales in the facts of the case did not attract levy under Section 3(4) of the Tamil Nadu General Sales Tax Act, 1959, and the revisions failed.

Final Conclusion: The Department's revisions were not maintainable on merits in view of the settled position governing export sales and the absence of any substantial question of law.

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