General State tax exemption triggered Central sales tax relief for inter-State tapioca powder sales under section 8(2-A).

General exemption under State sales tax law for tapioca attracted section 8(2-A) of the Central Sales Tax Act, 1956, because the State exemption operated generally for the specified goods. The fact that tapioca was otherwise taxable only at the purchase point did not prevent inter-State sales of tapioca powder from qualifying for Central sales tax exemption. The view that the exemption was conditional or too limited was erroneous, and the inter-State turnovers of tapioca powder were not liable to Central sales tax.

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Issues: Whether the exemption granted under the State sales tax law in respect of tapioca attracted section 8(2-A) of the Central Sales Tax Act, 1956 so as to render the inter-State sales of tapioca powder not liable to Central sales tax.

Analysis: Tapioca was taxable under the State law only at the purchase point and the exemption granted by G.O.Ms. No. 930 under section 9(1) of the Andhra Pradesh General Sales Tax Act was a general exemption in respect of the specified goods. Section 8(2-A) of the Central Sales Tax Act, 1956 applies where the sale or purchase of goods is exempt from tax generally under the appropriate State law, and such exemption is not confined by the absence of a separate order under section 8(5). The Tribunal's view that the exemption was conditional or limited to purchase-point taxation was held to be erroneous.

Conclusion: The inter-State turnovers of tapioca powder were entitled to exemption under section 8(2-A) of the Central Sales Tax Act, 1956 and were not liable to Central sales tax.

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