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TMI Blog1987 (11) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... ppeals by special leave are directed against the decision of a Division Bench of the High Court of Punjab Haryana on a reference under Section 22 of the Punjab General Sales Tax Act (here in after referred to as 'the Act'). The short facts necessary for the disposal of these appeal are as follows : 2.The respondent-assessee supplied cement in the years in 1964-1965 and 1965-1966 to the Punjab State Electricity Board (referred to hereinafter as 'the Board') on the basis of the certificates issued by the Board to the effect that the cement was required for use in the generation or distribution of electrical energy. In the initial assessment proceedings on the basis of these certificates the sales of cement by the assessee to the Board wer ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the years 1965-66, had been granted wrongly and issued additional demands aggregating to Rs. 18,000/-. 6.The assessee challenged the additional demands made before the Sales Tax Tribunal, Haryana but the challenge was repelled by the Tribunal and the appeal of the assessee dismissed. 7.Thereafter a reference was made by the Tribunal to the Punjab Haryana High Court under Section 22 of the Act. The Division Bench of the High Court while disposing of the reference came to the conclusion that on a true construction of the provisions of Section 5(2)(a)(iv) of the Act, the assessee, who made sales to the said Board on the basis of the certificates that the cement was required for use in the generation and distribution of electrical energy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it must be shown that the goods in question, namely, the cement supplied by the assessee in this case was actually used in the generation or distribution of electrical energy. It must be noted that the important words used in the relevant provisions are goods for use by it in the generation or distribution of such energy (emphasis supplied by us). On a plain reading of the relevant clause it is clear that the expression "for use" must mean "intended for use". If the intention of the legislature was to limit the exemption only to such goods sold as were actually used by the undertaking in the generation and distribution of electrical energy, the phraseology used in the exemption clause would have been different as, for example, "goods actual ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on before us. 13.We are, therefore, of the view that the real question which we are called upon to determine is whether, in the present case, the cement supplied was intended for use directly in the generation or distribution of electrical energy. If it was so intended, the exemption was attracted but not otherwise. The certificates which we have referred to earlier issued by the Board clearly show that the intention of the Board was that the cement should be used for a purpose directly connected with the generation or distribution of electrical energy. There is no material to show that the certificates were false certificates given by the Board, having another use in mind, or that they were fraudulently obtained by the assessee in collus ..... X X X X Extracts X X X X X X X X Extracts X X X X
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