State sales tax exemption followed the central tariff meaning, bringing rexine within cotton fabrics and exempting the goods.

Rexine was treated as falling within the expression "cotton fabrics" for purposes of the Andhra Pradesh General Sales Tax Act exemption. The exemption under section 8 depended on the corresponding central definition in the Additional Duties of Excise Act and the relevant Central Excises schedule, so the scope of the State exemption moved with the central tariff meaning in force at the relevant time. Because rexine came within that meaning and the additional excise duty requirement was satisfied, the goods were protected by section 8 and were also exempt from central sales tax under section 8(2-A) of the Central Sales Tax Act.

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Issues: Whether rexine fell within the expression "cotton fabrics" in item 5 of the Fourth Schedule to the Andhra Pradesh General Sales Tax Act, 1957, and therefore qualified for exemption from sales tax and central sales tax.

Analysis: The exemption under section 8 of the Andhra Pradesh General Sales Tax Act, 1957, was linked to the meaning of the corresponding expression in the Additional Duties of Excise (Goods of Special Importance) Act, 1957, which in turn adopted the meaning given in the relevant schedule to the Central Excises and Salt Act, 1944. The controlling principle was that the scope of the exemption varied with the scope of the corresponding central definition at the relevant time. Since rexine was treated as coming within that meaning, and the assessee had paid the additional excise duty contemplated by the 1957 Act, the goods attracted the protection of section 8 and, by virtue of section 8(2-A) of the Central Sales Tax Act, 1956, were exempt from both State sales tax and central sales tax.

Conclusion: Rexine was held to be covered by "cotton fabrics" and the exemption was upheld in favour of the assessee.

Final Conclusion: The revision failed because the disputed goods were within the exempted category, and the assessment orders could not be sustained.

Ratio Decidendi: Where a State sales tax exemption adopts the meaning of a central tariff entry, the scope of the exemption must be determined by the corresponding central definition in force at the relevant time.

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