Export sales fall outside additional tax under concessional purchase provisions, preventing levy on raw materials used for exports.

Export sales of manufactured goods are not covered by the expression in Section 3(4) of the Tamil Nadu General Sales Tax Act, 1959, so additional tax cannot be levied on raw materials purchased at concessional rate under Section 3(3). The text reads Section 3(4) with the statutory definition of sale and Explanation 3(a), but confirms that export sales cannot be stretched into the additional levy provision. It also notes that applying Section 3(4) to export sales would conflict with the constitutional prohibition against taxing export sales. The revision therefore failed, and the Tribunal's view that export sales lie outside Section 3(4) was upheld.

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Issues: Whether export sale of manufactured goods falls within the expression used in Section 3(4) of the Tamil Nadu General Sales Tax Act, 1959 so as to attract additional tax on the raw materials purchased at concessional rate under Section 3(3).

Analysis: The concessional purchase provision and the additional levy provision were read with the definition of sale in Section 2(n) and Explanation 3(a), which deems a sale or purchase to have taken place in the State when the goods are within the State at the relevant time. The Court relied on the earlier Division Bench ruling that export sale is also a sale for the purposes of the Act and that the expression in Section 3(4) cannot be stretched to cover export sales. It further held that the reliance on the Karnataka decision concerning purchase tax under a differently worded provision was misplaced, and that a construction bringing export sales within Section 3(4) would conflict with the constitutional prohibition against taxing export sales.

Conclusion: Export sale is not within the mischief of Section 3(4), and the additional levy on the concessional purchase turnover was not exigible.

Final Conclusion: The revision failed because the Tribunal's view that export sales are outside Section 3(4) was upheld, leaving no substantial question of law for consideration.

Ratio Decidendi: Where the statutory definition of sale read with the deeming fiction fixes the situs within the State and the transaction is an export sale, Section 3(4) cannot be invoked to impose additional tax on the goods purchased at concessional rate.

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