Fourth Schedule sales tax exemption applies when goods match the statutory description and attract additional excise duty.

Goods answering the description in the Fourth Schedule of the Andhra Pradesh General Sales Tax Act remained exempt where they were goods on which additional excise duty was leviable under the Additional Duties of Excise (Goods of Special Importance) Act, 1957. Emery cloth was treated as textile fabric falling within the corresponding First Schedule entry despite its sand-coated use, so the exemption applied. Tarpaulin was likewise treated as cotton fabric within the same scheme, and its separate inclusion in the State taxing schedule did not defeat the statutory exemption. The governing principle was that the Fourth Schedule exemption prevails once the goods satisfy the relevant description and duty-linked condition.

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Issues: (i) Whether emery cloth was exempt from tax under the Andhra Pradesh General Sales Tax Act as goods covered by the Fourth Schedule by reason of liability to additional duties of excise under the Additional Duties of Excise (Goods of Special Importance) Act, 1957. (ii) Whether tarpaulin was exempt from tax under the Andhra Pradesh General Sales Tax Act as cotton fabrics falling under the Fourth Schedule, notwithstanding its inclusion in the First Schedule.

Issue (i): Whether emery cloth was exempt from tax under the Andhra Pradesh General Sales Tax Act as goods covered by the Fourth Schedule by reason of liability to additional duties of excise under the Additional Duties of Excise (Goods of Special Importance) Act, 1957.

Analysis: The exemption under Section 8 of the Andhra Pradesh General Sales Tax Act applies to goods specified in the Fourth Schedule. Entry 5 of that Schedule covers cotton fabrics, man-made fabrics and woollen fabrics where additional excise duty is leviable, and its Explanation links those expressions to the corresponding heads in the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957. Applying that scheme, emery cloth was treated as falling within Item 59.03 of the First Schedule to the 1957 Act, namely textile fabrics of cotton and man-made textile materials impregnated, coated, covered or laminated. Its basic character as cloth was not displaced by the sand-coated use to which it was put.

Conclusion: Emery cloth was held to be exempt from tax under Section 8 of the Andhra Pradesh General Sales Tax Act.

Issue (ii): Whether tarpaulin was exempt from tax under the Andhra Pradesh General Sales Tax Act as cotton fabrics falling under the Fourth Schedule, notwithstanding its inclusion in the First Schedule.

Analysis: Tarpaulin was held to answer the description of cotton fabrics within Entry 5 of the Fourth Schedule, read with Item 59.03 of the First Schedule to the Additional Duties of Excise (Goods of Special Importance) Act, 1957. The fact that tarpaulin was also specifically mentioned in Entry 174 of the First Schedule to the Andhra Pradesh General Sales Tax Act did not alter the statutory exemption, because the Fourth Schedule exemption prevailed once the goods answered the relevant description and were goods on which additional excise duty was leviable. The inclusion in the taxing schedule did not by itself negate the exemption.

Conclusion: Tarpaulin was held to be exempt from tax under Section 8 of the Andhra Pradesh General Sales Tax Act.

Final Conclusion: The revision challenge failed because the Tribunal's view that both commodities were exempt from sales tax was affirmed, and no legal error warranting interference was found.

Ratio Decidendi: Where goods fall within the Fourth Schedule exemption by virtue of their statutory description and corresponding liability to additional excise duty, their mere inclusion in the taxing schedule does not override the exemption under Section 8 of the Andhra Pradesh General Sales Tax Act.

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