Judgment

TULZAPURKAR, J..- This appeal by special leave raises the question whether on true construction of Entry No. 15 of the Notification No. ST-II-4949/X-10 (2)-74 dated May 30, 1975 issued under Section 3-A of U. P. Sales Tax Act, 1948, the negotiated sale of a Thermal Power Plant by appellant No. 1 to appellant No. 2 is exigible to sales tax thereunder?

2. The short facts giving rise to the question may be stated: A Thermal Power Plant at Rampur comprising seven boilers, five turbines together with its associate auxiliaries, components and accessories originally belonged to the U. P. State Electricity Board. The Board after selling it in working condition to appellant No. 1 on May 29, 1974 for Rs. 41.31 lakhs called upon the latter to pay sales tax thereon which was paid under protest. Appellant No. 1 used it for generating electricity from May 29, 1974 to Sept. 30, 1975. As the power position improved in the State of U. P. appellant No. 1 discontinued the generation of electricity through this power plant and finding it expedient to realise its investment negotiated a sale thereof in perfect working condition to appellant No. 2. Appellant No. 1 desired to charge sales tax on t