2014 (8) TMI 935

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....pares and the assessment order relatable to the present case is for the period 1996-1997. The Assessing Officer noticed that the assessee had purchased raw materials at concessional rate of tax against Form XVII Declaration and used the same for manufacture of goods for the purpose of export out of the country. Since the manufactured goods had not been sold either locally or outside the State as a result of direct interstate sale, the assessing authority levied tax on the purchase turnover of goods under Section 3 (4) of the Tamil Nadu General Sales Tax Act. Against the said assessment, the assessee preferred an appeal to the Appellate Assistant Commissioner, who dismissed the appeal against which the assessee preferred further appeal to th....

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.... held as follows:-     "(1) Liability under Section 3 (4) of TNGST Act :     The appellant has purchased raw materials against form XVII declarations, utilised in manufacture and exported the finished goods. Section 3 (3) of TNGST Act entitles a dealer to purchase raw materials at concessional rate against Form XVII for manufacturing and sale. But if the finished goods is disposed of other than by way of sale, the concessional rate is not available consequently the differential rate of tax is attracted under Section 3 (4) of TNGST Act, 1959. In this case, the appellant has exported goods manufactured out of raw materials purchased against Form XVII declarations. The export is not considered as a sale both....

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.... goods so manufactured' as contained in sub-section (4) of Section 3 of the Act so as to bring it within the ambit of the said explanation?           iii) Whether the Appellate Tribunal is legally correct in distinguishing the judgment of the Hon'ble Supreme Court in the case of State of Karnataka - Vs - B.M. Ashraf & Co. reported in 107 STC 571 where it was held that a sale deemed to be in the course of export under Section 5 (3) of the Central Sales Tax Act, 1956, cannot be regarded as an intrastate sale?        iv) Whether the Appellate Tribunal is correct in construing that the levy of tax attracted under Section 3 (4) of the Act in the event of exp....