Sales tax exemption does not permit collection from buyers; the prohibition in the eligibility certificate was valid.

A small-scale industrial unit granted sales tax exemption under the Andhra Pradesh General Sales Tax Act was relieved only from liability to pay tax and did not acquire any right to collect tax from purchasers. Section 6-A was held inapplicable to justify collection on exempt sales, and the absence of section 30-B during the relevant period did not change that position because tax could not be collected on goods whose sale or purchase was exempt under section 9. The condition in the eligibility certificate prohibiting collection of sales tax was therefore valid.

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Issues: Whether a small-scale industrial unit enjoying exemption from sales tax under the Andhra Pradesh General Sales Tax Act, 1957 could nevertheless collect sales tax from buyers, and whether the condition in the eligibility certificate prohibiting such collection was valid.

Analysis: The exemption granted under the Act was held to relieve the dealer from liability to pay tax, not to confer a right to collect tax from purchasers. Section 6-A, dealing with purchase tax in specified circumstances, was held inapplicable to support a right to collect tax on exempt sales. The absence of section 30-B during the relevant period did not alter the position, because even without that provision no person could collect tax on goods whose sale or purchase was exempt under section 9.

Conclusion: The condition prohibiting collection of sales tax was valid, and the petitioner had no right to collect tax during the exemption period.

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