The judgment of the Court was delivered by

KANIA, J. - This is a reference under section 34(3) of the Bombay Sales Tax Act, 1953 (hereinafter referred to as "the said Act"), made at the instance of the Commissioner of Sales Tax.

The facts giving rise to this reference are as follows : In respect of the assessment period from 1st April, 1954, to 31st March, 1955, the assessees (respondents) claimed a set-off in respect of an amount of Rs. 2,761-4-9, which included, inter alia, an amount of Rs. 437-8-6, being the amount of general sales tax paid by the assessees on the purchase of certain electric meters, which were given by the assessees on rent to the consumers to whom the electricity produced by the assessees was supplied. It may be mentioned that the assessees were registered dealers under the said Act and were engaged in the generation and distribution of electricity. The claim of the assessees for set-off in respect of the said amount of Rs. 437-8-6 (hereinafter referred to as "the said amount") was disallowed by the sales tax authorities on the ground that such a set-off was not admissible under rule 11(2)(c) of the Bombay Sales Tax (Exemptions, Set-off and Compositio