Conditional tax exemption can still create exempted goods where statutory conditions are satisfied, excluding related turnover tax.

Goods exempted by a valid notification issued under the Act remain "exempted goods" within section 2(18) even when the exemption is conditional, provided the statutory conditions are satisfied. The notified stainless steel flats, ingots and billets therefore fell within the exemption framework, and the turnover relating to those goods was excluded from turnover tax under section 13-A(2)(i). The issue was decided against the assessee.

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Issues: Whether goods exempted from tax by a conditional notification under section 15 of the Rajasthan Sales Tax Act, 1994 qualify as "exempted goods" within section 2(18) and whether turnover relating to such goods is excluded from turnover tax under section 13-A(2)(i).

Analysis: The definition of "exempted goods" in section 2(18) covers any goods exempted from tax in accordance with the Act. Section 15 empowers the State Government to grant exemption by notification, fully or partially, prospectively or retrospectively, conditionally or unconditionally. The notification exempting sale of stainless steel flats, ingots and billets was issued in exercise of that statutory power. A conditional exemption does not take the goods outside the statutory definition; once the notified conditions are fulfilled, the goods stand exempted under the Act and the turnover relating to them answers the description of turnover of exempted goods.

Conclusion: The turnover relating to the notified goods is excluded from turnover tax under section 13-A(2)(i); the issue is decided against the assessee.

Ratio Decidendi: Goods exempted by a valid notification under the exemption power of the Act, even if subject to conditions, remain "exempted goods" for the purpose of exclusion from turnover tax when the statutory conditions are satisfied.

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