Judgment

KANIA, J. :- These appeals 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 (hereinafter referred to as the Act). The short facts necessary for the disposal of these appeals are as follows :

The respondent-assessee supplied cement in the years 1964-65 and 1965-66 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 were exempted. The exemption was granted under S. 5(2)(a)(iv) of the Act.

2-3. Section 5(2)(a)(iv) of the Act reads as under :

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

(a) xxx xxx xxx

(i) to (iii) xx xx xx xx xx

(iv) Sales to any undertaking supplying electrical energy to the public under a licence or sanction granted or deemed