2015 (5) TMI 414

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....interpreting the expression 'does not sell the goods so manufactured' occurring in sub-section (4) of Section 3 of the Tamil Nadu General Sales Tax Act, 1959 as including not only intra state but also export sale? ii. Whether the Appellate Tribunal is correct in invoking the principle of situs as envisaged in Explanation 3 (a) to Section 2 (n) of the Tamil Nadu General Sales Tax Act, 1959 for the purpose of interpretation of the expression 'does not sell the 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 Supreme Court in the case of Stat....

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....9 at Rs. 10,08,60,743/- at 1%. This turnover includes the value of stock transfer. 2.2. Challenging the assessment order, the assessee filed an appeal before the Appellate Assistant Commissioner (CT)  IV, Chennai, who dismissed the appeal. 2.3. On further appeal by the assessee, the Tribunal sustained the levy of tax under Section 3(4) of the Tamil Nadu General Sales Tax Act in respect of turnover relating to stock transfer and deleted the levy of tax under Section 3(4) of the Act on the sales to exporters and direct sale following the decision of this Court in M/s.Tube Investments of India Limited V. State of Tamil Nadu, (2010) 36 VST 67 and thereby allowed the appeal. 2.4. Aggrieved by the order passed by the Tamil Nadu Sale....

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.... of the Parliament, which cannot be countenanced. In other words, when the State lacks the legislative competence by virtue of the Constitutional embargo to levy any tax on export sale, the indirect creation of any tax liability on such 'export sales' on the inputs purchased cannot at all be recognised. To put it differently, if the levy of 1% tax on the value of the goods purchased by the dealer who is dealing in manufacture of goods inside the State by availing concessional rate of 3% tax by using Form-XVII, under Section 3(3) of the Act would negate the very Constitutional restriction imposed under Article 286 as a 'deemed export' as set out under Section 5(3) of the Central Sales Tax Act, the same cannot be countenanced.....