Export sales cannot bear indirect State sales tax where constitutional protection overrides the statutory levy.

Section 3(4) of the Tamil Nadu General Sales Tax Act, 1959 could not be applied to levy tax on export sales of manufactured goods because such a levy would indirectly burden transactions protected from State taxation by the Constitution. The dealer's use of concessional purchase under Section 3(3) did not validate the export-linked levy, and the statutory provision had to yield to the constitutional prohibition. The Tribunal was therefore correct in deleting the turnover relatable to export sales, and the revision failed.

---

---

Issues: Whether tax under Section 3(4) of the Tamil Nadu General Sales Tax Act, 1959 could be levied on export sales of manufactured goods and whether the Tribunal was justified in deleting the turnover relatable to such export sales.

Analysis: The revision was governed by the earlier decision holding that Section 3(4) could not be applied so as to impose an indirect tax burden on export sales. Once the sales fall within the constitutional protection against State taxation on export transactions, the levy cannot be sustained merely because the dealer had availed concessional purchase under Section 3(3). The Court also held that the State's contention on jurisdiction was untenable in view of the settled law that tax cannot be collected without authority of law and that the constitutional prohibition prevails over the statutory levy.

Conclusion: The levy under Section 3(4) was not sustainable on export sales, and the Tribunal was in deleting the related turnover; the revision was dismissed in favour of the assessee.

Ratio Decidendi: A State levy that indirectly burdens export sales cannot be sustained where constitutional restrictions bar taxation of the export transaction itself, and statutory provisions must yield to that constitutional prohibition.

---