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TMI Blog2024 (5) TMI 662X X X X Extracts X X X X X X X X Extracts X X X X ..... rt, "the APGST Act, 1957") arising out of different assessment orders with respect to the same respondent on the same subject. Facts of the Case: 3. The respondent Pulp-N-Pack (P) Limited, Tadimalla is a trader in Pulp Moulded Egg Trays, (the Commodity in short) manufactured by a Small-Scale Industries (SSI) Units. The respondent was finally assessed by the Commercial Tax Officer (CTO) granting exemption on the sales turnover of Pulp Moulded Egg Trays from the levy of turnover tax pursuant to G.O. Ms. No. 1091 Revenue (CT-II) Department dated 31.10.1994, issued under Section 9 (1) read with Section 5A (1) (vi) of the APGST Act. The Deputy Commissioner (CT) in suo motu revision, vide separate orders dated 23.05.2007 and 24.05.2007 levied the turnover tax under Section 5-A, @ 10% holding that the respondent was liable to the turnover tax on the second sales of Pulp Moulded Egg Trays which fell under Item 19 of the First Schedule. The Appellate Tribunal allowed the respondent's four appeals vide separate orders dated 18.02.2008 restoring the order of the Commercial Tax Officer, holding that the respondent was entitled for exemption. 4. The details of all such cases is being given i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ekar submitted that the exemption granted to Pulp Moulded Egg Trays in terms of G.O. Ms. No. 1091 dated 31.10.1994 issued under Section 9 (1) of the APGST Act is not a general exemption. He further submitted that in any case, such exemption is not available to the respondent as it is not a manufacturing SSI Unit of such commodity. He placed reliance in Anandi Roller Flour Mills Ltd., Vs. Commissioner of Commercial Taxes, A.P. 2001(2) ALT 286 in support of his submissions. Submissions of the learned counsel for Respondent: 9. Sri S. Suri Babu, learned counsel for the respondent submitted that the exemption granted vide G.O. Ms. No. 1091 dated 31.10.1994 is a general exemption as it was issued under Section 9 (1) of the APGST Act, 1957 and it does not contain any condition or restriction contemplated by Sub-Section (2) of Section 9. Consequently, it cannot be a conditional exemption. He further submitted that the exemption being general exemption under Section 9 (1), no tax under Section 5A (1)(vi) shall be payable on that part of the turnover which related to sale of the commodity exempted from tax generally. 10. Sri S. Suri Babu further submitted that there would also be no liab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n sub-section (1-A)] [Substituted 'one paise in every rupee of turnover of a dealer' by Act No. 3 of 2002.] whose total turnover in a year exceeds rupees ten lakhs: Provided that the tax shall not be levied under this section on that part of the turnover of any dealer on which the dealer is liable to pay tax at the point of levy [specified in the First Schedule, except petrol, diesel oil, aviation turbine fuel, engine oils, lubricating oils, greases, brake fluids, furnaces oil and all kinds of motor vehicles,] [Substituted 'specified in the First Schedule' by Act No. 3 of 2002.] Second Schedule, Fifth Schedule and Seventh Schedule to the Act; Provided further that no tax under this section shall be payable on that part of turnover which relates to:- (i) sale or purchase of goods specified in Third Schedule; (ii) sale or purchase of goods specified in Fourth Schedule; (iii) sale or purchase of goods specified in Sixth Schedule; (iv) sale or purchase of goods in the course of inter-State trade or commerce; (v) sale or purchase of goods in the course of export out of the territory of India or sale or purchase in the course of import into the territory o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ise of the powers conferred by Sub-Section (1) of Section 9 of APGST Act, 1957 (Act IV of 1957, the Government of Andhra Pradesh hereby exempts from the tax payable under the said Act on the sale of Pulp Moulded Egg Trays manufactured by the Small-Scale Industries Units (SSI)". 19. The G.O. Ms. No. 1091 thus grants exemption on the sale of the Pulp Moulded Egg Trays manufactured by the Small-Scale industrial units. The Pulp Moulded Egg Trays which are manufactured by the Small-Scale industrial units, only, call for exemption. If not manufactured by the Small-Scale industrial units it would not be exempted. Consideration of Precedents on interpretation of taxing statute / Exemption provision: 20. In Ramnath and Company vs. Commissioner of Income Tax (2021) 12 SCC 217, the Hon'ble Apex Court observed that it remains trite that any process of construction of a written text primarily begins with comprehension of the plain language used. In such process of comprehension of a statutory provision, the meaning of any word or phrase used therein has to be understood in its natural, ordinary or grammatical meaning unless that leads to some absurdity or unless the object of the statute sug ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in Sun Export Corpn. [Sun Export Corpn. v. Collector of Customs, (1997) 6 SCC 564] as also in other cases that in the matters of taxation, when two views are possible, the one favourable to the assessee has to be preferred, stands specifically disapproved by the Constitution Bench in Dilip Kumar & Co. [Commr. of Customs v. Dilip Kumar & Co., (2018) 9 SCC 1] It has been laid down by the Constitution Bench in no uncertain terms that exemption notification has to be interpreted strictly; the burden of proving its applicability is on the assessee; and in case of any ambiguity, the benefit thereof cannot be claimed by the subject/assessee, rather it would be interpreted in favour of the Revenue." 24. Thus, the law declared is that the exemption notification should be interpreted strictly. The burden of proving the applicability would be on the assessee to show that his case comes within the parameters of the exemption clause or exemption notification. When there is ambiguity in exemption notification which is subject to a strict interpretation, the benefit of such ambiguity cannot be claimed by the assessee and it must be interpreted in favour of the revenue. 25. In State of Maharash ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of Customs v. Dilip Kumar & Co., (2018) 9 SCC 1] ]. 14. Essar Steel [Essar Steel (India) Ltd. v. State of Gujarat, (2017) 8 SCC 357] was a case relating to grant of exemption under Section 3(2)(a)(vii)(a) from payment of electricity duty under the 1958 Act. The Court relied on several decisions on interpretation of notification in the nature of exemption, to hold that the statutory conditions for grant of exemption can neither be tinkered with nor diluted. The exemption notification must be interpreted by their own wordings, and where the wordings of notification with regard to the construction is clear, it has to be given effect to. If on the wordings of the notification benefit is not available, then the court would not grant benefit by stretching the words of the notification or by adding words to the notification. To interpret the exemption notification one should go by the clear, unambiguous wordings thereof. These principles were applied in Essar Steel [Essar Steel (India) Ltd. v. State of Gujarat, (2017) 8 SCC 357] to deny benefit of Section 3(2)(a)(vii)(a) of the 1958 Act, as the condition of generating energy jointly with another undertaking was not fulfilled. 15. In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he benefit of the said clause, at that very moment, the commencement of construction even with construction the moment one brick is laid. It would be too far-fetched, in such a situation, to say that the land stands occupied by a building that has been constructed thereon. Even Mr Jain was candid in accepting that when the construction of building is still going on and is not completed, literally speaking, it cannot be said that the building "has been constructed". It is for this reason that he wanted us to give the benefit of this provision even in such cases by reading the expression to mean the same as "is being constructed". His submission was that the moment construction starts the urban land is put to "productive use" and that entitles the land from exemption of wealth tax. This argument of giving so-called purposive interpretation has to be rejected for more than one reasons. These are: (i) In taxing statute, it is the plain language of the provision that has to be preferred where language is plain and is capable of one definite meaning. (ii) Strict interpretation to the exemption provision is to be accorded, which is the case at hand. (iii) The purposive interpretatio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar G. Yadalam v. Commissioner of Wealth Tax (2015) 17 SCC 664, it was held that in a taxing statute it is the plain language of the provision that has to be preferred where language is plain and is capable of one definite meaning. Purposive interpretation can be given only when there is some ambiguity in the language of the statutory provision or it leads to absurd results. 29. In Krishi Upaj Mandi Samiti, New Mandi Yard, Alwar vs. Commissioner of Central Excise and Service Tax, Alwar (2022) 5 SCC 62, the Hon'ble Apex Court reiterated that the exemption notification should not be liberally construed and beneficiary must fall within the ambit of the exemption and fulfill the conditions thereof. In case such conditions are not fulfilled, the issue of application of the notification does not arise at all by implication. Para 3 of the report is follows: "3. Shri Prakul Khurana and Ms. Divyasha Mathur, learned counsel appearing on behalf of the respective appellants - respective Market Committees have vehemently submitted that as the activity of allotment of shops/premises/spaces to traders and brokers by the respective Market Committees for the purpose of storage and/or marketing of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a 7 of Rupa & Co., Ltd (supra) reads as under: "7. Undoubtedly, the Board circular and letters relied upon support Mr. Ganguli. However, if the interpretation given by the Board and the Ministry is clearly erroneous then this Court cannot endorse that view. An exemption Notification has to be constrained strictly but that does not mean that the object and purpose of the Notification is to be lost sight of and the wording used therein ignored. Where the wordings of the Notification are clear and unambiguous they have to be given effect to. Exemption cannot be denied by giving a construction not justified by the wordings of the Notification" Consideration of the Judgments cited: 31. In M/s. Medha Bio Technologies (P) Ltd. v. The Commercial Tax Officer WP. No. 4606 of 2010 & batch Erstwhile APHC decided on 29.09.2015 G.O. Ms. No. 167, dated 26.02.1999 was involved. The main question was if the exemption granted in G.O. Ms. No. 167, dated 26.02.1999 was a general exemption issued in exercise of powers under Section 9 (1) of the Andhra Pradesh General Sales Tax Act, and as such the same was also applicable for the inter-state sales, in view of Section 8 (2) of the Central Sales Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f Pine Chemicals Ltd. (supra) was referred and was distinguished on the ground that in Pine Chemicals Ltd. (supra) exemption was granted subject to the fulfillment of the conditions, but in G.O. Ms. No. 377 subject matter of Anandi Roller Flour Mills Ltd. (supra) any conditions or restrictions to be fulfilled by the Roller Flour Mills in order to get the benefit of exemption could not be found. 34. It was observed that the G.O. Ms. No. 377 intended to benefit a specified class of persons viz., Roller Flour Mills. There was no reference to any specified restriction or condition as in sub-section (2) of Section 9 more specifically under Clause (b) upon compliance of which the Roller Flour Mills were entitled to the exemption. The exemption was for a period of five years from the date of publication of the notification, but such exemption for a limited period could not be considered as restricted or a conditional exemption. The exemption granted to a specified class of persons should be considered as a general exemption and not as a restricted or conditional. It was held that in the absence of any restriction or condition as in Sub-Section (2) of Section 9, being imposed in notificat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inakini Seeds (supra), it was held that the same granted general exemption as was also previously held in Pinakini Seeds (supra). Consequently, the assessee was held entitled for exemption from tax on his turnover under the Central Sales Tax as well. 39. In M/s. Vinod Solvent Extracts Private Limited (supra) G.O. Ms. No. 930, dated 28.07.1977 issued under Section 9 (1) of APGST Act granting exemption on the purchase of tapioca powder was under consideration. It was held that the said exemption was a general exemption in respect of the specified class of goods falling squarely within the ambit of Section 9 (1) (i) in respect of the specified class of goods - Topioca - Exemption was granted from the purchase point and as the goods were not taxable at any other point, the exemption was at all points. Consequently, the disputed turnovers was held to be liable to be excluded from the levy under the Central Sales Tax Act. 40. In M/s. Vinod Solvent Extracts Private Limited (supra) this Court referred to its earlier judgment in the case of Hindustan Milkfood Manufacturers Ltd. v. State of A.P. (1982) 51 STC 1 (AP) in which, the distinction between two kinds of exemptions in Sections 8 an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... specified class of goods and also (ii) by any specified class or persons in regard to the whole or any part of their turnover. The exemption notification under Sub-Section (1), may extend to the whole or any specified areas of the State and under clause (b) of sub-section (2), it may be subject to such restriction and conditions as may be specified in the notification, including conditions as to the license and license fee. If a notification is issued under section 9 (1), without imposing any such restrictions and conditions as contemplated by Sub-Section (2), we are of the view that such notification granting exemption would be a general exemption notification. The reason is that the plain reading of Section 5(A)(1) clause (vi), refers to exemption from tax generally under Sub-Section (1) of section 9 of the APGST Act. 44. We have to see the notification under Sub-Section (1) of section 9, if the grant of exemption thereunder is subject to restrictions or conditions, which may be imposed under Sub-Section (2). The notification if confined to the sale or purchase of any specified class of goods, i.e the Pulp Moulded Egg Trays manufactured by Small-Scale Industrial Unit or by any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the A.P.G.S.T Act. But that would not mean that it is a notification granting general exemption also for the purpose of the C.S.T Act. Under C.S.T Act the word 'generally' has been explained in Section 8(2A) of that Act, and for the G.O. Ms. No. 1091 to qualify for exemption to the assessee it will have to fulfill the requirements of Section 8(2A), which aspect would be considered shortly under Question 'C' as framed. Question 'B': 47. Learned counsel for the respondent submitted that the G.O. Ms. No. 1091 is applicable and the respondent was entitled for exemption which has rightly been granted by the Appellate Tribunal. He submitted that the respondent is a Small-Scale industry. The sale is by the Small-Scale industry and of the Pulp Moulded Egg Trays which are manufactured by the Small-Scale industry. He submitted that the Pulp Moulded Egg Trays having been manufactured by a Small-Scale industry its sale by another Small-Scale industry would also fulfill the requirements of the G.O. Ms. No. 1091 entitling the respondent for exemption under Section 5A (1), (vi) to the second proviso. 48. In the present case; (i) the sale is of Pulp Moulded Egg Trays; (ii) Pulp Moulded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pproved by this Court in Modern School v. Union of India [Modern School v. Union of India, (2004) 5 SCC 583, para 62 : 2 SCEC 577], by reiterating that a legislation must further its objectives and not create any confusion or friction in the system. If the ordinary meaning of the text of such law is non-conducive for the objects sought to be achieved, it must be interpreted accordingly to remedy such deficiency." 52. In Bajaj Auto Limited v. Union of India (2019) 19 SCC 801 the Hon'ble Apex Court held that one principle is that exemption notifications, must be read in a manner that give them a liberal interpretation, provided that no violence is done to the language employed. Referring to the previous pronouncement in Novopan (India) Ltd. v. CCE & Customs 1994 Supp (3) SCC 606 it was observed that the rationale for the same is well enunciated in that case. In such cases, it is not as if the principle of strict interpretation of tax law has been given a complete go by, but that rule of interpretation would apply at a different stage i.e., to determine whether the exemption is applicable to the assessee or not. Once such exemption is indeed found to be applicable to the assessee, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed in Section 4-A are very clear and unambiguous. As per the settled proposition of law and as observed hereinabove, the statute and more particularly, the exemption provisions are to be read as they are and to be construed literally and should be given a literal meaning. Giving the literal meaning to the exemption provision, namely, Section 4-A, it cannot be said that the appellant is entitled to the exemption as claimed." 54. Recently, in Checkmate Services Private Limited v. Commissioner of Income Tax-1 (2023) 6 SCC 451on interpretation of a tax statute, the Hon'ble Apex Court held reiterating that the taxing statutes are to be construed strictly and that there is no room for equitable considerations. They are entirely out of place. A taxing statute cannot be interpreted on any presumption or assumption. A taxing statute has to be interpreted in the light of what is clearly expressed. It cannot imply anything which is not expressed. It cannot import provisions in the statute so as to supply any deficiency. It also referred to the Constitution Bench in Commr. of Customs v. Dilip Kumar & Co. (2018) 9 SCC 1 in which one of the principles was observed that if the words are ambiguo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pliance with the same must result in cancelling the concession made in favour of the grantee, the respondent herein." This was also reaffirmed in a number of judgments, such as CIT v. Ace Multi Axes Systems Ltd. [CIT v. Ace Multi Axes Systems Ltd., (2018) 2 SCC 158] 57. The Constitution Bench, in Commr. of Customs v. Dilip Kumar & Co. [Commr. of Customs v. Dilip Kumar & Co., (2018) 9 SCC 1] endorsed as following : (SCC pp. 19 & 23-24, paras 24 & 34) "24. In construing penal statutes and taxation statutes, the Court has to apply strict rule of interpretation. The penal statute which tends to deprive a person of right to life and liberty has to be given strict interpretation or else many innocents might become victims of discretionary decision-making. Insofar as taxation statutes are concerned, Article 265 of the Constitution [ "265. Taxes not to be imposed save by authority of law.-No tax shall be levied or collected except by authority of law."] prohibits the State from extracting tax from the citizens without authority of law. It is axiomatic that taxation statute has to be interpreted strictly because the State cannot at their whims and fancies burden the citizens without a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he respondent herein is the Small-Scale industrial unit, we are considering the sale by SSI only and not making any observation with respect to the sale by any other dealer/assessee. So far as the respondent assessee is concerned the sale by it of the kind of the commodity exempted under G.O. Ms. No. 1091, would be entitled for exemption. 57. The submission advanced by the learned Government Pleader that the exemption is available, if the sale is by the SSI which manufactured the Pulp Moulded Egg Trays, is not acceptable as it does not follow from the plain language of the G.O. Ms. No. 1091. It is the manufacturing which should be by the Small-Scale industrial units. If the argument advanced by the learned Government Pleader is accepted, we would deny exemptions to the respondent assessee by giving a construction which does not follow from the wordings of the notification. The words of the notification are clear and unambiguous. The same have to be given effect to. The benefit of exemption therefore cannot be denied. 58. Even if, the submission of the learned GP be acceptable that the G.O. Ms. No. 1091 is ambiguous and is open also to the interpretation as argued by him, though w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to be exempt from tax generally under the sales tax law of the appropriate State if under that law the sale or purchase of such goods is exempt only in specified circumstances or under specified conditions or the tax is levied on the sale or purchase of such goods at specified stages or otherwise than with reference to the turnover of the goods. 60. Section 8 (2A) starts with non abstante clause. It overrides the provisions of sub-Section (1-A) of Section 6 or sub-section (1) or clause (b) of sub-section (2) of Section 8 with reference to the tax payable under the CST Act by a dealer on his turnover in so far as the turnover or any part thereof relates to sale or purchase of any goods. If sale or purchase of the goods under the sales tax law of the appropriate State, exempt from tax generally or subject to the taxes generally at rate which is lower than 4%, then the dealer is entitled for the relief under the CST Act as contemplated under the State Act. But here, the explanation to sub-section (2A) of section 8 becomes relevant. 61. Sub-section (2A) of Section 8 of CST Act uses the expression "exempt from tax generally" under the Sales Tax Law of the appropriate State. The expl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on 2 (1) (e) of the A.P. General Sales Tax Act 1957, which defined the word 'dealer' was for consideration. There was inbuilt expression "deeming provision" in the said Explanation. So, the Explanation IV also contained a deeming clause. The Hon'ble Apex Court held that the object of the Explanation IV containing such deeming clause was to expand the meaning of the word 'dealer'. It further observed that the same could not be read as a retrospective enactment so as to cover old transactions of the past. Thus, so far as the construction or interpretation of explanation is concerned, though generally the purpose of explanation is to clarify the doubts but an explanation can also supply something to the content of the main provision. It depends upon the statutory provision from which the legislative intention is to be discovered by first and foremost application of the rule of construction, which is literal construction. 64. In Swedish Match AB v. Securities & Exchange Board of India (2004) 11 SCC 641 the Hon'ble Apex Court considered 'Explanation' and as regards functions of an 'explanation' it observed as under in paragraph-68: "68. As regards functions of an Explanation, it was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... State Act may not be a general exemption for the purposes of Central Sales Tax Act if the exemption is only in specified circumstances or under specified conditions. Under Section 9 (1) of the APGST Act even the exemption can be for the specified goods and also for specified class of persons i.e., under specified circumstances or under specified conditions as under sub-section (1) and also may be without any restriction imposed as under sub-section (2) and the same may be construed as a general exemption under Section 5A, but the same would not be the general exemption notification for the purposes of the Central Act in view of explanation which explains the term 'generally' and excludes from the expression exemption granted under special circumstances or under special conditions. 67. In Pine Chemicals Ltd. (supra) The matter arose under Jammu & Kashmir General Sales Tax Act and the Central Sales Tax Act. The Hon'ble Apex Court initially granted exemption holding that the Government Order No. 159 Ind. Dated 26.03.1971 which was the subject matter of consideration therein, must be understood as an order granting exemption under and with reference to Section 5 of the Jammu & Kashmir ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e idea behind sub-section (2-A) of Section 8 of the Central Sales Tax Act was to exempt the sale or purchase of the goods from the Central Sales Tax where the sale or purchase of such goods was exempt generally under the State sales tax law. It was held that due regard must be given and due meaning to the expression 'generally' which occur in sub-section (2-A) and which expression has been defined in the explanation. The Hon'ble Apex Court observed that if the said expression had not been there, it could probably have been possible to argue that inasmuch as the goods sold by a particular manufacturer-dealer were exempt from the State tax in his hands, they must equally be exempt under the Central Act. But, sub-section (2-A) requires specifically that such exemption must be a general exemption and not an exemption operative in specified circumstances or under specified conditions. The Hon'ble Apex Court observed that the answer was only in the negative. It was observed that such goods were exempt from tax only when they were manufactured in a large or medium industrial unit within five years of its commencement of production and sold within the said period, i.e., in certain specifie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mption from taxation is conferred by conditions or in certain circumstances there is no exemption from tax generally". In applying the ratio of Indian Aluminium Cables Ltd. (supra), the Hon'ble Apex Court held in Pine Chemicals Ltd. (supra) that answer to the question would have been against the assessee inasmuch as it was not a case where goods were totally exempt from tax. That was a case where the exemption operated or was attracted only if it was established that such goods were manufactured in a large or medium industrial unit, within five years of its going into production and were sold within that period. Such exemption was not with reference to goods but with reference to the unit manufacturing the goods. 72. In Pine Chemicals Ltd. (supra) the Hon'ble Apex Court clearly observed that sub-section (2-A) speaks of sale or purchase of goods being exempt generally under the State Sales Tax enactment, it does not speak of exemption qua the dealer, much less qua the unit manufacturing such goods. The exemption notification issued by the Jammu & Kashmir Government granted the exemption qua the industrial unit manufacturing the goods and the period within which they were manufactur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... category of goods is irrelevant; it may be any goods. It is concerned only with the industrial unit producing them and the period within which they are manufactured and sold. Can it be said in such a case that it is an instance where the sale is of goods, the sale or purchase of which is under sales tax law of the appropriate State, exempt from tax generally? Certainly not. Exemption provided by Government Order No. 159, to repeat, is not with reference to goods but with reference to the industrial unit. So long as it is (i) a large or medium scale industry and (ii) it manufactures and sells goods within the five years of its going into production, the sale of such goods is exempt irrespective of the nature or classification of goods. Similar goods may be manufactured by another unit but if it does not satisfy the above two requirements, the goods manufactured and sold by it would not be entitled to exemption from tax. Indeed, the goods manufactured by that very unit would not be eligible for exemption if they are manufactured after the expiry of five years from the date it goes into production and/or sells them beyond the said period. The period of exemption may also vary from uni ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nit within five years of its going into production and were sold within that period. As pointed out hereinbefore, the exemption was not with reference to goods but with reference to the unit manufacturing the goods. 12. In International Cotton Corpn. (P) Ltd. v. C.T.O. [(1975) 3 SCC 585 : 1975 SCC (Tax) 78], a Bench of this Court comprising four learned Judges observed that "the object of sub-section (2-A) of Section 8 is to exempt transaction of sale of any goods if they are wholly exempt from tax under the sales tax law of the appropriate State and make the said sales chargeable at lower rates where under the Sales Tax Act of the State the sale transactions are chargeable to tax at a lower rate ...", though it is true, the point raised and determined in that case was a different one. In our respectful opinion, the decision in Indian Aluminium [(1976) 4 SCC 27 : 1976 SCC (Tax) 437] which was a decision rendered by a Bench of three learned Judges was binding upon the Bench which decided the Pine Chemicals [(1992) 2 SCC 683]. (This Bench too comprised three learned Judges.) It is, however, interesting to notice that when the above two decisions were brought to the notice of the Be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is granting general exemption within the meaning of Section 8 (2A) of the Central Sales Tax Act read with its explanation. If it is so, the assessee would be entitled for exemption under the Central Sales Tax Act as well, but if the said government order cannot be deemed to have granted general exemption within the meaning of this expression, under Section 8 (2A) and the exemption was available only in specified circumstances or under specified conditions, the assessee would not be entitled for exemption under the Central Sales Tax Act. 74. G.O. Ms. No. 1091, dated 31.10.1994, as reproduced supra, grants exemption from the tax payable under Andhra Pradesh General Sales Tax Act on the sale of pulp moulded egg trays manufactured by the Small-Scale Industrial Units. When we compare G.O. Ms. No. 1091, dated 31.10.1994 with G.O. Ms. No. 159, dated 26.03.1971 of Jammu & Kashmir as was involved in Pine Chemicals Ltd. (supra) what we find is that the pulp moulded egg trays is mentioned in G.O. Ms. No. 1091, whereas in G.O. No. 159 of Jammu & Kashmir the goods were not mentioned. What was mentioned was with reference to the industrial unit, so long as it was (i) a large or medium scale in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... peak of an exemption for the dealer much less for the unit manufactured under Section 8 (2A) of the Central Sales Tax Act. It speaks sale or purchase of goods being exempted generally under the State Sales Tax enactment. In the present case, the State did not grant exemption to the goods generally but exemption was granted if the goods in question was manufactured by a Small-Scale industrial unit. Consequently, we are of the considered view that the exemption vide G.O. Ms. No. 1091, dated 31.10.1994 is not a general exemption within the meaning of Section 8 (2A) of the Central Sales Tax Act. It cannot be covered under the expression 'generally' under Section 8 (2A) read with its explanation. Exemption under G.O. Ms. No. 1091 may be available under the State Act, Section 5-A (i) (vi), but the same would not be available under the Central Sales Tax Act, Section 8 (2A), only because exemption is available under the State Act. 75. The judgments cited by the learned counsel for the respondent are of no help so as to grant exemption in view of G.O. Ms. No. 1091 dated 31.10.1994 considering it as 'general exemption' for the purpose of Section 8 (2A) of the Central Sales Tax Act. The G.O. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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