General State sales tax exemption for village-industry products can reduce Central Sales Tax to nil under Section 8(2A).

Sales of bamboo and cane products made by certified producers were treated as exempt under Entry 52 of Schedule III of the Assam Sales Tax Act because the exemption for khadi and village-industry products was general and not confined to specified circumstances or conditions. On that basis, Section 8(2A) of the Central Sales Tax Act applied, so turnover in such goods was not liable to Central Sales Tax. The note states that where goods are generally exempt under the appropriate State sales tax law, Central Sales Tax becomes nil for that turnover.

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Issues: Whether sales of bamboo and cane products made by certified producers covered by Entry 52 of Schedule III of the Assam Sales Tax Act, 1947 are exempt from Central Sales Tax under Section 8(2A) of the Central Sales Tax Act, 1956.

Analysis: Entry 52 exempts khadi and products of village industries when sold by a producer or by an organization certified for the purpose by the competent Khadi and Village Industries authority. The materials before the Court showed that the members of the petitioner society were certified producers and that the goods sold by them were products of village industries. The exemption under Entry 52 was held to be a general exemption and not one restricted to specified circumstances or conditions. Under Section 8(2A) of the Central Sales Tax Act, 1956, where goods are exempt generally under the appropriate State sales tax law, Central Sales Tax on such turnover becomes nil.

Conclusion: The sales of the goods described in the writ petition were exempt generally under the Assam Sales Tax Act, 1947 and were therefore also exempt from Central Sales Tax by virtue of Section 8(2A) of the Central Sales Tax Act, 1956.

Ratio Decidendi: An exemption under State sales tax law is "general" for purposes of Section 8(2A) of the Central Sales Tax Act, 1956 when it is not confined to specified circumstances or specified conditions; sales of such goods are not liable to Central Sales Tax.

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