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TMI Blog2015 (7) TMI 549X X X X Extracts X X X X X X X X Extracts X X X X ..... of India Limited V. State of Tamil Nadu [2010 (10) TMI 938 - MADRAS HIGH COURT] followed. - Decided in favor of assessee. - Tax Case (Revision) No. 41 of 2015 - - - Dated:- 10-6-2015 - R. Sudhakar And K. B. K. Vasuki,JJ. For the Petitioner : Mr. Kanmani Annamalai Special Government Pleader ORDER (Order of the Court was made by R. Sudhakar,J.) This Tax Case (Revision) is filed by the Revenue as against the order dated 217.04.2012 made in T.A.No.154 of 2008 on the file of the Tamil Nadu Sales Tax Appellate Tribunal (Main Bench), Chennai raising the following substantial questions of law: i) Whether the order of the Appellate Tribunal is correct in interpreting the expression does not sell the goods so manufactured occ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s within the State of Tamil Nadu alone as evident from the pre-factory explanation to the said Act. 2. The brief facts of the case are as follows: The respondent/assessee is engaged in the business of raw hides and finished leather. The assessee was assessed on a total and taxable turnover for the assessment year 2002-03 under the Tamil Nadu General Sales Tax Act, 1959. The Assessing Officer noticed that the assessee had purchased raw materials against Form XVII declarations, used the same in the manufacture of goods and sold the same by way of export. Hence, the Assessing Officer estimated the turnover used in the manufacture of goods exported at ₹ 19,55,340/-applying formula and assessed the same at 1% under Section 3(4) of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... utset, it should be held that the imposition of tax as provided under Section 3(4) to be applicable to such an export sale would run counter to such an intention 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 Constitutiona ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ale of the assesses will run counter to the well laid legal principles referred to above and the same cannot be countenanced. 33. On these grounds itself, it can be held that there would be no scope for invoking Section 3(4) in regard to the export sales of the goods manufactured. 7. In an identical circumstance, this Court in T.C.(A)Nos.38 and 39 of 2014 dated 17.9.2014 followed the above-said decision of this Court and decided the issue in favour of the assessee and against the Revenue. 8. In view of the law laid down by this Court in the decision cited supra, 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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