Conditional State sales tax exemption does not attract Central sales tax relief under section 8(2-A) when exemption is not general.

Section 8(2-A) of the Central Sales Tax Act, 1956 applies only where the corresponding State law grants a general exemption from sales tax; a conditional or restricted exemption is insufficient. A State notification for electronic goods manufactured in Orissa required production of a certificate and complied with other stated conditions and exceptions, so it was not a general exemption in character. On that basis, the assessee could not claim exemption from Central sales tax, and the assessment and appellate orders were sustained.

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Issues: Whether exemption from Central sales tax under section 8(2-A) of the Central Sales Tax Act, 1956 is available when the corresponding State notification grants exemption only subject to specified conditions and restrictions.

Analysis: Section 8(2-A) extends the benefit of Central sales tax exemption only where the relevant sales or purchases of goods are generally exempt under the State sales tax law. The governing principle is that the exemption must be general in character and not one operating only in specified circumstances or upon fulfilment of prescribed conditions. The State notification governing electronic goods manufactured in Orissa granted exemption only subject to production of a certificate and other stated conditions and exceptions. Such a notification does not amount to a general exemption under the State law.

Conclusion: The assessee was not entitled to exemption from Central sales tax, and the challenge to the assessment and appellate orders failed.

Final Conclusion: A conditional State exemption does not trigger section 8(2-A) of the Central Sales Tax Act, 1956, so inter-State sales remain taxable under the Central sales tax regime.

Ratio Decidendi: For the purpose of section 8(2-A) of the Central Sales Tax Act, 1956, only a general exemption under the State sales tax law qualifies for exemption from Central sales tax; a conditional or restricted exemption does not.

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