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2015 (4) TMI 78 - HC - VAT and Sales TaxBenefit of lesser tax under Section 3(3) of the Tamil Nadu General Sales Tax Act - whether the Tribunal was justified in deleting the turnover in terms of Section 3(4) of the Tamil Nadu General Sales Tax Act - Held that - Following decision of M/s.Tube Investments of India Limited V. State of Tamil Nadu 2010 (10) TMI 938 - MADRAS HIGH COURT - no tax can be collected without the authority of law. Therefore, following the above-said decision, we find no question of law much less any substantial question of law arises for consideration in this revision - Decided against Revenue.
Issues:
Interpretation of the expression "does not sell the goods so manufactured" under Section 3(4) of the Tamil Nadu General Sales Tax Act, 1959. Applicability of the principle of situs as per Explanation 3(a) to Section 2(n) of the Act. Distinction between intrastate sale and sale deemed in the course of export under Central Sales Tax Act. Validity of levy of tax on export sale under Section 3(4) and its compliance with Article 286 of the Constitution. Scope of the expression "in any other manner" under Section 3(4) regarding export sale. Understanding of Sections 3(3) and 3(4) as non-charging provisions. Consideration of the legislative intent behind the Tamil Nadu General Sales Tax Act, 1959. Detailed Analysis: 1. The primary issue in this case revolves around the interpretation of the expression "does not sell the goods so manufactured" in Section 3(4) of the Tamil Nadu General Sales Tax Act, 1959. The Tribunal's decision was influenced by the principle of situs under Explanation 3(a) to Section 2(n) of the Act, leading to a debate on whether export sales fall within the purview of this provision. 2. The Tribunal's decision was also challenged based on the interpretation of intrastate sale versus sale deemed in the course of export under the Central Sales Tax Act. The Tribunal's reliance on a previous judgment was questioned, highlighting the need for clarity on the distinction between these types of sales. 3. Another significant issue raised was the validity of levying tax on export sale under Section 3(4) and its compliance with Article 286 of the Constitution. The Tribunal's understanding of this levy as a direct imposition on export sale itself was scrutinized for its alignment with constitutional provisions. 4. The scope of the expression "in any other manner" under Section 3(4) regarding export sale was a point of contention. The Tribunal's construction of this phrase and its exclusion of export sales within its ambit were challenged, emphasizing the need for a comprehensive interpretation. 5. The judgment also delved into the understanding of Sections 3(3) and 3(4) as non-charging provisions. The Tribunal's failure to recognize these sections as charging provisions was analyzed in light of the legislative intent behind the Tamil Nadu General Sales Tax Act, 1959. 6. Ultimately, the Court relied on precedent and legal principles to dismiss the Tax Case (Revision). The decision was grounded in the hierarchy of laws, emphasizing the supremacy of constitutional provisions over conflicting statutory laws. The dismissal was based on the established legal framework, concluding that no substantial question of law arose for consideration in this revision.
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