Export sales of manufactured goods cannot be taxed again under Section 3(4) when precedent treats them as sales under the Act.

Manufactured corrugated boxes sold to exporters were held not liable to tax under Section 3(4) of the Tamil Nadu General Sales Tax Act, 1959, because the governing precedent treated such export sales as sales within Section 2(n) read with Explanation 3(a). On that basis, the turnover from those sales could not be brought to tax again under Section 3(4). The Madras High Court therefore answered the questions against the Revenue, upheld the Tribunal's deletion of the levy, and dismissed the revision.

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Issues: Whether tax under Section 3(4) of the Tamil Nadu General Sales Tax Act, 1959 could be levied on turnover arising from sales of manufactured goods to exporters, and whether such export sales fall within the expression relating to sale of goods manufactured so as to exclude the levy.

Analysis: The dealer manufactured corrugated boxes and sold the finished products to exporters. The Tribunal had followed earlier binding precedent holding that export sales are covered by the definition of sale under Section 2(n) read with Explanation 3(a) of the Tamil Nadu General Sales Tax Act, 1959, and therefore no corresponding turnover could be brought to tax under Section 3(4). The revision raised identical questions, but the legal position had already been settled in the cited line of decisions relied upon by the Tribunal.

Conclusion: The levy under Section 3(4) was not sustainable on the export sales turnover, and the questions were answered against the Revenue.

Final Conclusion: The revision was dismissed and the Tribunal's deletion of the levy was left undisturbed.

Ratio Decidendi: Where manufactured goods are sold to exporters and the governing precedent treats such export sales as covered by the definition of sale, turnover attributable to those sales cannot be assessed again under Section 3(4) of the Tamil Nadu General Sales Tax Act, 1959.

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