Conditional sales tax exemption does not extend under section 8(2A) where the State relief applies only in specified circumstances.

Sales of power cables and aluminium conductors to undertakings supplying electrical energy were held not to qualify for central sales tax exemption under section 8(2A) of the Central Sales Tax Act because the corresponding State exemption operated only in specified conditions. The State relief under the Punjab General Sales Tax Act applied only where sales were made to a licensed undertaking supplying energy to the public and for use in generation or distribution, which is a conditional exemption and not an exemption from tax generally. The explanation to section 8(2A) excludes exemptions available only in specified circumstances, and the earlier decision on the same statutory setting was treated as controlling. The exemption claim therefore failed.

---

---

Issues: Whether sales of power cables and aluminium conductors to undertakings supplying electrical energy for use in generation or distribution were exempt from central sales tax under section 8(2A) of the Central Sales Tax Act because the corresponding State sales were exempt under section 5(2)(a)(iv) of the Punjab General Sales Tax Act.

Analysis: The State exemption applied only to sales satisfying specified conditions, namely sales to an undertaking supplying electrical energy to the public under a licence and for use in generation or distribution of such energy. Such a conditional exemption is not an exemption from tax generally within section 8(2A). The explanation to section 8(2A) expressly excludes exemptions operating only in specified circumstances or under specified conditions. The earlier decision on the same statutory setting was treated as directly applicable, and no relevant distinction was accepted between the amended and unamended form of the provision for this controversy.

Conclusion: The sales were not exempt from central sales tax under section 8(2A), and the claim for exemption failed.

---