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 thr