Electricity source is irrelevant for exemption eligibility when the industrial unit actually uses power to run the factory.

For eligibility under section 4-A of the U.P. Trade Tax Act, 1948, the decisive factor is whether the industrial unit consumed electricity for running the factory, not whether the supply came from the electricity department or from another lawful source. Electricity used through a hired third-party generator was treated as equivalent in principle to utility supply, and the fact that the generator was taken on monthly rent supported the conclusion that the unit itself was operating the source for production. The use of a hired generator therefore did not disqualify the unit from exemption eligibility, and the revision was dismissed.

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Issues: Whether, for the purpose of eligibility under section 4-A of the U.P. Trade Tax Act, 1948, electricity used for running the unit through a hired third-party generator could be treated as sufficient compliance when the connection was not in the name of the firm or its partners.

Analysis: The Court held that the decisive factor was the use of electricity by the factory, not the particular source from which electricity was obtained. Electricity supplied by the utility and electricity generated through a generator were treated alike in principle, since in both situations the unit consumes electricity through machinery. The fact that the generator was taken on monthly rent further showed that the unit itself was running the generator for its production. The scheme of section 4-A did not make the exemption dependent on electricity being supplied only by the electricity department and not through another lawful source.

Conclusion: The use of a hired generator for running the industrial unit did not disqualify the respondent from eligibility under section 4-A, but the revision was nevertheless found to have no merit and was dismissed.

Ratio Decidendi: For the purpose of eligibility under section 4-A of the U.P. Trade Tax Act, 1948, what matters is the industrial unit's consumption of electricity for running the factory, and not the particular source of generation or supply of that electricity.

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