The exemption granted by the State Government under section 9 (1) of the Andhra Pradesh General Sales Tax Act, 1957 qualifies for exemption under section 8 (2-A) of the Central Sales Tax Act, 1956.

SYED SHAH MOHAMMED QUADRI, J.

( 1 ) THIS tax revision case is filed under section 22 (1) of the Andhra Pradesh General Sales Tax Act (for short "the State Act"), by the assessee being dissatisfied with the order of the Tribunal in Tax Appeal No. 490 of 1984 dated 27/10/1987.

( 2 ) THE short but interesting question that arises for consideration in this revision, is whether the exemption granted by the State Government under section 9 (1) of the State Act qualifies for exemption under section 8 (2-A) of the Central Sales Tax Act (for short "the Central Act" ).

( 3 ) THE petitioner is a registered dealer in seeds both under the State Act as well as the Central Act. It claimed exemption on the turnover of the seeds as inter-State sales under the Central Act. The assessing authority held that he was not entitled to exemption. The petitioner unsuccessfully appealed before the Appellate Deputy Commissioner, Commercial Taxes, Guntur. The second appeal filed before the Sales Tax Appellate Tribunal having been rejected, it came up in revision to this Court.

( 4 ) SRI P. Srinivasa Reddy, the learned counsel for the petitioner, contends that the two requirements of G. O. Ms. No. 604, Rev. (S), dated April 9, 1981, which exempt the turnover of seeds under the State Act, are not cumulative. Even if one of the requirements of the G. O. , is satisfied, the assessee is entitled to exemption. He further contends that the exemption granted under the said G. O. Ms. No. 604 dated 9/04/1981 is a general exemption and qualifies even under section 8 (2-A) of the Central Act.

( 5 ) THE learned Government Pleader for Commercial Taxes, on the other hand, submits that the requirements of the said G. O. , are that the seeds must be "certified and truthfully labelled seeds". He further contends that the expression used "for agricultural purposes" in the said G. O. , is indeed a condition under which the exemption is granted. Therefore, the turnover does not qualify for exemption under section 8 (2-A) of the Central Act.

( 6 ) TO appreciate the contentions of the learned counsel, it would be necessary to note the provisions of section 9 of the State Act, which reads as follows : "9. Power of State Government to notify exemptions and reductions of tax (or interest ).- (1) The State Government may, by notification in the Andhra Pradesh Gazette, make an exemption, or reduction in rate, in respect of any tax or interest payable under this Act - (i) on the sale or purchase of any specified class of goods, at all points or at any specified point or points in series of sales or purchases by successive dealers; or (ii) by any specified class of persons, in regard to the whole or any part of their turnover. (2) Any exemption from tax or interest or reduction in the rate of tax notified under sub-section (1) - (a) may extend to the whole of the State or to any specified area or areas therein; (b) may be subject to such restrictions and conditions as may be specified in the notification, including conditions as to licences and licence fees. "

( 7 ) THIS section enables the State Government, inter alia, to make an exemption or reduction in tax in respect of any tax or interest payable under the Act, on the sale or purchase of any specified class of goods, at all points or at any specified point or points in the series of sales or purchases by successive dealers, or by any specified class of persons in regard to the whole or any part of the turnover.

( 8 ) SUB-SECTION (1-A) of section 6 of the Central Act makes a dealer liable to pay tax under the Central Act on sale of any goods effected by him in the course of inter-State trade or commerce notwithstanding the fact that no tax would have been leviable whether on the seller or the purchaser under the sales tax law of the appropriate State if that sale had taken place inside the State. However, sub-section (2-A) of section 8 of the Central Act provides that notwithstanding anything contained in sub-section (1-A) of secti

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