Conditional State tax exemption does not trigger Central sales tax relief under section 8(2-A).

Section 8(2-A) of the Central Sales Tax Act, 1956 applies only where the relevant sale or purchase is exempt under State law generally, or is generally taxable at a lower rate. A State exemption that depends on a condition, such as the dealer not having actually collected tax, is not a general and unconditional exemption and therefore does not satisfy the statutory test. On that basis, the assessee could not claim exemption from Central sales tax on purchases of coconuts under section 8(2-A).

---

---

Issues: Whether the assessee was entitled to exemption from Central sales tax under section 8(2-A) of the Central Sales Tax Act, 1956 on the footing that the purchase of coconuts was exempt under the State sales tax law.

Analysis: Section 8(2-A) applies only where the sale or purchase is exempt from tax generally or is subject generally to a lower rate of tax under the State law. The exemption relied on was not a general and unconditional exemption, but one subject to the condition that the dealer had not actually collected tax. Such a conditional exemption does not satisfy the statutory requirement for invoking section 8(2-A).

Conclusion: The assessee was not entitled to protection under section 8(2-A) of the Central Sales Tax Act, 1956.

---