Judgment : Per : Hon’ble Servesh Kumar Gupta, J. (Oral) Judgment and order dated 23.4.2007, rendered by the Commercial Tax Tribunal, Dehradun in Second Appeal No. 125/2006, pertaining to Assessment Year 2000-01, is under challenge in this revision. 2. Relevant facts of the case are that respondent/assessee Tehri Hydro Development Corporation (for short, the Corporation), a joint venture of State Government and Central Government, is engaged in production of electricity as well as in development of hydroelectric plants. The Corporation approached the concerned Tax Assessing Officer for recognition in terms of Section 4-B of the U.P. Trade Tax Act, 1948 (for short, the Act) and, accordingly, sought exemption in tax on the articles, equipments, accessories, machineries, plants, etc. purchased in connection with production of electricity, which included construction of dams, tunnels and power houses. List of such articles was supplied by the Corporation to the Assessing Officer. The Assessing Officer allowed the benefit of Section 4-B of the Act only in respect of those articles which can be used directly in production of electricity, but did not give such benefit on the articles mentioned herein below on the ground that the same are not used directly in production of electricity, and, accordingly, levied tax on those articles. (1) All types of cement, bitumen, GC Sheets, asbestos sheets, explosives, detonators, (2) Loader, dodgers, excavators, sprinklers, dumpers, graders, cranes, muck-dumpers, shawal doglines, back hoges, conversion kits and their spare parts, packers road rollers and their spare parts, electric win chase, sheet piling plant and well shiking equipments with spare parts, tyres, tubes and flaps (meant to be used in heavy machine). (3) Paints and varnishes, glasses of various thickness and sizes, pipe fitting, delivery pipes, tools, wires of different sizes, hardware. (4) Petrol, petroleum product, diesel oil and lubricants. (5) Gauge metres, electrical goods (has been granted but not on their spare parts) motors, battery, electrodes, welding machine and their spare parts, associates equipments of generator, electrical testing equipments. (6) Testing equipments of all kinds and their spare parts. (7) Ramraj geru, sand, lime, bajri, marble, chips, moram, gitty, kankar, stoneblast, stone and opticals of stones excepts glazed stones. (8) Copper sheet, rubber sheet, bituminous joint filler and bitumen products, tarcoal, etc., tiles, glasses, doors and windows of aluminum and iron (for power house), wingers, batteries, bolts, etc. 3. (6) Testing equipments of all kinds and their spare parts. (7) Ramraj geru, sand, lime, bajri, marble, chips, moram, gitty, kankar, stoneblast, stone and opticals of stones excepts glazed stones. (8) Copper sheet, rubber sheet, bituminous joint filler and bitumen products, tarcoal, etc., tiles, glasses, doors and windows of aluminum and iron (for power house), wingers, batteries, bolts, etc. 3. The Corporation claimed that though the above items were not used directly for the generation of the electricity, but the same are essential requirements in the manufacturing of the electric plants and in the construction of dams, tunnels and powerhouses as well as the linked roads. The Assessing Officer did not accede to this argument and he levied the tax stating that the same is justified in accordance with the provisions contained under Section 4-B(2) of the Act. 4. On appeal by the Corporation, Joint Commissioner (Appeal), upheld the order of the Assessing Officer. Feeling disgruntled, the Corporation preferred Second Appeal before the Commercial Tax Tribunal, Dehradun, and the learned Tribunal overturned the order of the Assessing Officer as well as that of the Joint Commissioner (Appeal). Hence, this revision has been preferred by Trade Tax/Commercial Tax Department. 5. This revision was admitted by this Court on the following question of law: “Whether the Commercial Tax Tribunal has erred in law in permitting the assessee u/s 4-B(2) of U.P. Trade Tax Act, 1948, to purchase the goods in question at concessional rate which were not directly used in production/generation of power (electricity)”? 6. Heard learned Counsel for the parties and perused the papers on record. 7. 6. Heard learned Counsel for the parties and perused the papers on record. 7. Before any further discussion, this Court thinks it just and proper to reproduce the relevant part of Section 4-B(2) of the Act, which is as under: Section 4-B(2) “Where a dealer requires any goods, referred to in sub-section (1) for use in the manufacture by him, in the State of any notified goods or in the packing of such notified goods manufactured or processed by him, and such notified goods are intended to be sold by him in the State or in the course of inter-State trade or commerce or in the course of export out of India, he may apply to the assessing authority in such forms and manner and within such period as may be prescribed for the grant of a recognition certificate in respect thereof; and if the applicant satisfies such requirement including requirement of depositing late fee and conditions as may be prescribed, the assessing authority shall grant to him in respect of such goods a recognition certificate in such form, and subject to such conditions, as may be prescribed.” 8. It is also pertinent to quote here the relevant notification, issued by the State of Uttar Pradesh (applicable to the State of Uttarakhand), and the same reads as under: “T.I.F.-2-2383/XI-9(251)/97-U.P. Act-15-48-Order-98 dated 23-11-1998. It is also pertinent to quote here the relevant notification, issued by the State of Uttar Pradesh (applicable to the State of Uttarakhand), and the same reads as under: “T.I.F.-2-2383/XI-9(251)/97-U.P. Act-15-48-Order-98 dated 23-11-1998. In exercise of the powers under section 4-B of the Uttar Pradesh Trade Tax Act, 1948 (U.P. Act No. XV of 1948), read with section 21 of the Uttar Pradesh General Clauses Act, 1904 (U.P. Act No. 1 of 1904) and in supersession of all the previous notifications issued under the said section 4-B, the Governor is pleased to declare that with effect from December 1, 1998, and subject to conditions and restrictions specified in the said section 4-B, the tax shall be payable at the rate specified in column 4 of the Annexure below on the sale to or as the case may be, purchase by, a dealer holding a valid recognition certificate under sub-section (2) of the said section 4-B, of the goods mentioned in column 3 of the said Annexure for use in the manufacture or in the packing of the goods mentioned in column 2 of the said Annexure manufactured or processed by him and that the goods mentioned in column 2 of the said Annexure shall be notified goods for the purposes of the said section 4-B. ANNEXURE Sl. No.Name of notified goodsName of the goodsRate of Tax 1.2.3.4. 1.Chemical fertilizer and electrical energy (a) Natural Gas (b) Declared goods (c) All other raw material, processing material, consumable stores, machinery, plant, equipment, spare parts, accessories, components, fuels or lubricants for use in the manufacture of or any packing material for packing of notified goods manufactured by him. No.Name of notified goodsName of the goodsRate of Tax 1.2.3.4. 1.Chemical fertilizer and electrical energy (a) Natural Gas (b) Declared goods (c) All other raw material, processing material, consumable stores, machinery, plant, equipment, spare parts, accessories, components, fuels or lubricants for use in the manufacture of or any packing material for packing of notified goods manufactured by him. 5 per cent 2 per cent 2.5 per cent 2.All other goods(a) Declared goods (b) All other raw material, processing materials, consumable stores, machinery, plant, equipment, spare parts, accessories, components, fuels or lubricants for use in manufacture of or any packing material for packing of such notified goods manufactured by him2 per cent 2.5 per cent Provided that no concession under this notification shall be admissible in respect of sale to or purchase by distilleries and breweries: Provided further that where any declared goods liable to tax under sub-section (1) of section 3-D of the said Act are sold or supplied by a dealer, who is the first purchaser thereof, to another dealer holding a valid recognition certificate issued under sub-section (2) of the said section 4-B, the dealer making such sale or supply shall, on furnishing to the Assessing Authority within the time prescribed a declaration in Form 3-B obtained from the dealer to whom such goods were sold or supplied, be liable to tax at the rate of two percent on the turnover of first purchase of such goods.” 9. The sole argument put forth before this Court on behalf of the Department/revisionist was that all these items, indicated above, were not directly and substantially connected with the generation of the electricity. So, the learned Tribunal did not rightly construe the provisions of law and allowed the special relief on those goods as per Section 4-B(2) of the Act. This contention has been rebutted by learned Counsel for the Corporation by contending that use of these items is indispensable in construction of a new unit or plant, which goes into production after the date. Without establishment and making the provisions for its construction and effective running, the generation of the power is not possible. This contention has been rebutted by learned Counsel for the Corporation by contending that use of these items is indispensable in construction of a new unit or plant, which goes into production after the date. Without establishment and making the provisions for its construction and effective running, the generation of the power is not possible. So, the Corporation was right in claiming the tax exemption, in respect of those goods used in the establishment and effective running of the plant, as per Section 4-B(2) of the Act, as the power can only be generated when the entire plant is established and becomes functional thereafter. 5. This Court is convinced with the contention of the learned Counsel for the respondent Corporation and feels that the analogy, whereupon the decision of the Assessment Officer was based, lacks substance and was rightly rejected by the learned Tribunal. As such, impugned judgment and order dated 23.4.2007, passed by the Commercial Tax Tribunal, Dehradun in Second Appeal No. 125/2006, pertaining to Assessment Year 2000-01, requires no interference by this Court. The same is hereby upheld. 6. Consequently, this revision is dismissed.