STATE OF MADHYA PRADESH vs ABDEALI

The Supreme Court held that the Madhya Bharat Sales Tax Act, 1950, Section 5, provides specific conditions for exemption from sales tax on hand-made footwear, which include that the sale must be by the manufacturer or a family member, the footwear must be hand-made, and the sale price must not exceed Rs. 12-8-0. The Court found that the High Court's interpretation, which allowed for sales outside the State to qualify for exemption, was incorrect as it disregarded the condition that the sale must occur within the State. The exemption is valid as it protects small manufacturers from competition with large-scale producers, and does not violate Article 304(a) of the Constitution.