JUDGMENT

RAY, C. J.:— This appeal by special leave is on the question whether the appellant is exempt from inter-State tax on the sales of poles and cables to the Delhi Electric Supply Undertaking by reason of the provisions contained in Section 5 (2) (a) (iv) of the Punjab Sales Tax Act hereinafter referred to as the State Act.

2. Section 5 (2) (a) (iv) of the State Act is as follows:

"5 (2) In this Act the expression "taxable turnover" means that part of a dealers gross turnover during any period which remains after deducting therefrom-

(a) his turnover during that period on-

(iv) sales to any undertaking supplying electrical energy to the public under a licence or sanction granted or deemed to have been granted under the Indian Electricity Act. 1910, of goods for use by it in the generation or distribution of such energy."

3. Under Section 8 of the Central Sales Tax Act hereinafter referred to as the Central Act. every dealer, who in the course of inter-State trade or commerce sells to the Government any goods: or sells to a registered dealer other than the Government goods of the description referred to in sub-section (3) shall be liable to pay tax under this Act, which shall be three per cent of his turnover.

4. The provisions in Section 8 (2A) of the Central Act are as follows:-

"Notwithstanding anything contained in sub-section (1A) of Sec. 6 or sub-section (1) or sub-section (2) of this section, the tax payable under this Act by a dealer on his turnover in so far as the turnover or any part thereof relates to the sale of any goods, the sale or, as the case may be, the purchase of which is, under the sales tax law of the appropriate State, exempt from tax generally or subject to tax generally at a rate which is lower than three per cent, (whether called a tax or fee or by any other name), shall be nil or, as the case may be, shall be calculated at the lower rate.

EXPLANATION: For the purposes of this sub-section a sale or purchase of any goods shall not be deemed 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."

5. The contention on behalf of the appellant is that by reason of the Explanation to Section 8 (2A) of the Central Act read with Section 5 (2) (a) (iv) of the State Act the appellant is exempt from payment of inter-State sales tax. The words "goods for use by it in the generation or distribution of such energy" occurring in Section 5 (2) (a) (iv) of the State Act are said by counsel for the appellant to be descriptive of the goods. In short, the appellants contention is that goods for use by the undertaking supplying electrical energy are generally exempt from taxation, and, therefore, they should not be included in the turnover.

6. The contention on behalf of the State is that the exemption granted under Section 5 (2) (a) (iv) 1713 of the State Act is exemption in specified circumstances and under specified conditions. The specified circumstances are said to be sales to an undertaking supplying electrical energy to the public under the Indian Electricity Act, 1910. The specified conditions are that the goods are for use by the undertaking in the generation or distribution of such energy.

7. The answer to the question in this appeal is whether the exemption mentioned in Section 5 (2) (a) (iv) of the State Act is in specified circumstances or under specified conditions, as the case may be or it is a general exemption as the appellant contends in cases of sales of goods to an Electric Supply Undertaking for use by it in the generation or distribution of such energy.

8. The appellant referred to Schedule B read with Section 6 of the State Act and in particular Items 33 and 46 to illustrate what would be exemption under specified circ