Conditional State tax exemption does not trigger Central sales tax relief for goods used in electricity generation or distribution.

Sales of poles and cables to an electricity supply undertaking did not qualify for inter-State sales tax exemption under section 8(2A) of the Central Sales Tax Act because the corresponding State exemption was conditional, not general. The Punjab Sales Tax Act exemption applied only where the purchaser was an undertaking supplying electrical energy to the public and the goods were used in generation or distribution of that energy. That use requirement was a limiting condition, so the Central Act's explanation barred exemption where relief existed only in specified circumstances. The sales were therefore taxable and the Central exemption was unavailable.

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Issues: Whether sales of poles and cables to an electricity supply undertaking were exempt from inter-State sales tax under section 8(2A) of the Central Sales Tax Act by reason of the exemption in section 5(2)(a)(iv) of the Punjab Sales Tax Act.

Analysis: The exemption in the State Act was not a general exemption from tax. It operated only where the sale was made to an undertaking supplying electrical energy to the public and where the goods were for use in generation or distribution of that energy. The explanation to section 8(2A) denies Central tax exemption where the State exemption exists only in specified circumstances or under specified conditions. The condition that the goods be used in generation or distribution of energy was a limiting condition, not a mere description of the goods.

Conclusion: The sales were not exempt from tax generally within the meaning of section 8(2A) of the Central Sales Tax Act read with section 5(2)(a)(iv) of the Punjab Sales Tax Act, and the exemption under the Central Act was unavailable.

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