Conditional State sales tax exemption cannot trigger Central sales tax relief unless it is a general exemption.

An exemption under State sales tax law will not extend to Central sales tax relief under section 8(2A) unless it is a general exemption. The exemption for aluminium domestic utensils in the Tamil Nadu Third Schedule was conditional, as amended to apply only to utensils not operated by pressure or electricity. Because the exemption operated only in specified circumstances and under specified conditions, it was not treated as a general exemption within the Explanation to section 8(2A). The petitioner was therefore not entitled to claim exemption from Central sales tax on that basis.

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Issues: Whether the petitioner was entitled to exemption from Central sales tax under section 8(2A) of the Central Sales Tax Act on the basis of the exemption entry in the Third Schedule to the Tamil Nadu General Sales Tax Act.

Analysis: The exemption entry for aluminium domestic utensils was not treated as an unqualified or general exemption. The entry, as amended, limited the exemption to aluminium domestic utensils not operated by pressure or electricity. Under the Explanation to section 8(2A) of the Central Sales Tax Act, a sale or purchase is not deemed to be exempt generally if the exemption operates only in specified circumstances or under specified conditions. Applying that principle, the State exemption was held to be conditional rather than general, and therefore it could not extend automatically to Central sales tax relief.

Conclusion: The petitioner was not entitled to the benefit of exemption under section 8(2A) of the Central Sales Tax Act.

Ratio Decidendi: An exemption under State sales tax law qualifies for relief under section 8(2A) of the Central Sales Tax Act only if it is a general exemption and not one limited by specified conditions or circumstances.

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