Purchase turnover exemption for export-linked manufacture upheld under section 3(4) where goods were exported outside the State.

Purchase turnover of raw materials obtained against Form XVII declarations and used in manufacturing goods exported outside the State was held not taxable under section 3(4) of the Tamil Nadu General Sales Tax Act, 1959. The Tribunal had applied the binding view that an export sale falls within the expression used in section 3(4), so the corresponding purchase turnover could not be subjected to tax in those circumstances. The revision was dismissed and the relief granted to the assessee was sustained.

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Issues: Whether purchase turnover of raw materials obtained against Form XVII declarations and used in manufacture of goods exported outside the State could be brought to tax under section 3(4) of the Tamil Nadu General Sales Tax Act, 1959.

Analysis: The revision arose from the assessment of purchase turnover under section 3(4) on the footing that the manufactured goods were exported and not sold within the State. The Tribunal had granted relief by following the binding view that export sale falls within the ambit of the expression used in section 3(4) and that the corresponding purchase turnover could not be subjected to tax in such circumstances.

Conclusion: The revision was dismissed and the relief granted to the assessee was sustained.

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