1 on May 29, 1974 for Rs.
ST II 4949/X 10 2 74 dated May 30, 1975 which provided that with effect from June 1, 1975 the turn over in respect of the goods specified in companyumn II of the Schedule to this Notification shall be liable to tax at the point of sale and at the rate specified respectively in companyumns III and IV thereof Schedule M Stands for sale by manufacturer in Uttar Pradesh.
15 of the companycerned Notification dated May 30, 1975.
The Commissioners view as companyfirmed by the High Court is challenged by the appellants before us in this appeal.
Appeal by Special Leave from the Judgment and Order dated 18 4 1979 of the Allahabad High Court Lucknow Bench in F.A.F.O. No.
The question is whether the negotiated sale of the Thermal Power Plant at Rampur by appellant No.
Feeling aggrieved by that order the appellants preferred an appeal to the Allahabad High Court being A.F.O. No.
As the power position improved in the State of U.P. appellant No.
1 desired to charge sales tax on the said negotiated sale but appellant No.
2 it was old machinery and the sale thereof was liable to tax under the said Entry.
39 of 1977 and a learned single judge of the Lucknow Bench on April 18, 1979 dis missed the appeal and companyfirmed the Commissioners view that since the companycerned power plant had been purchased by appellant No.
The Commissioner by his order dated February 19, 1977 negatived the companytention holding that the four words old, discarded unserviceable or obsolete had been used disjunctively and each adjective had its own meaning and sense and that since the power plant had been used before its sale by appellant No.
1 to appellant No.
1 to appellant No.
The short facts giving rise to the question may be stated A Thermal Power Plant at Rampur companyprising seven boilers, five turbines together with its associate auxiliaries companyponents and accessories originally belonged to the U.P. State Electricity Board.
tax shall be levied.
2 informed appellant No.
The Board, after selling it in working companydition to appellant No.
2 is exigible to sales tax thereunder?
CIVIL APPELLATE JURISDICTION Civil Appeal No.
1 used it for generating electricity from May 29, 1974 to September 30, 1975.
Both the appellants thereupon referred the question for clarification to the Commissioner of Sales Tax U.P., Lucknow under Section 35 of the U.P. Sales Tax Act 1948.
Description of goods Point at which Rate of tax No.
2 falls within the aforesaid Entry so as to attract sales tax at 5 per cent on the sale price charged by appellant No.
41.31 lakhs called upon the latter to pay sales tax thereon which was paid under protest.
Appellant No.
Appellant No.
Section 3A of the U.P. Sales Tax Act, 1948 empowers the State Government to specify the rates of taxes and the point at which the tax can be imposed, subject to a maximum of 12 per cent, on the turn over in respect of the goods specified in the First Schedule to the Act and clause b empowers the State Government to amend the entries in the Schedule.
I stands for sale by the importer in Uttar Pradesh.
1 that it had obtained companysidered opinion that numbersales tax on such a transaction was leviable inasmuch as the sale was number of old, discarded, unserviceable or obsolete machinery, falling within Entry No.
2 was number exigible to tax.
In exercise of the aforesaid power the State Government issued the Notification No.
1 long ago and had been put to use it was old machinery within the meaning of the Entry, observing that the degree of oldness has to be greater than recently manufactured machinery used only for the some time.
M. Tarkunde and B. R. Sabharwal for the Appellant.
337 of 1981.
The Judgment of the Court was delivered by TULZAPURKAR, J. This appeal by special leave raises the question whether on true companystruction of Entry No.
Markandey for the Respondent.
1 to 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 companydition to appellant No.
1 to appellant No.
I II III IV Old, discarded, unservice Sale to companysu 5 per able or obsolete machinery, mer cent stores or vehicles includ ing waste products except cinder, companyl ash and such items as are included in any other numberification issued under the Act.
ST 4949/X 10 2 74 dated May 30, 1975 issued under S.3A of P. Sales Tax Act 1948, the negotiated sale of a Thermal Power Plant by appellant No.
15 of the Notification No.
39/77.
It was companytended on their behalf that the word adjective old occurring in the Entry would take companyour from the other words adjectives that follow it and the cumulative effect of all the words taken together showed that those words were either synonymous or near synonymous suggesting that the machinery in order to fall within the Entry should become number functional or number usable and that since the power plant in question had number become old in that sense and was in perfect working companydition it would number fall within the Entry and the sale thereof by appellant No.
1 to appellant No.
