Concessional CST eligibility turns on direct use in electricity generation, not ancillary civil constructions supporting the business.

Building materials used for a labour colony, administrative building and compound wall do not qualify for concessional inclusion in the registration certificate merely because they support a power undertaking. The functional test under section 8(3)(b) of the Central Sales Tax Act, read with rule 13, requires an integral and direct nexus with the actual generation or distribution of electricity. Commercial expediency or a statutory obligation to construct supporting facilities does not expand the statutory scope. Goods used for ancillary civil constructions are outside the intended use requirement, whereas materials for plant or power-house structures may be treated differently only where they form part of the generation or distribution apparatus.

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Issues: Whether building materials used for construction of a labour colony, an administrative building and a compound wall could be included in the registration certificate as goods intended for use in the generation or distribution of electricity under section 8(3)(b) of the Central Sales Tax Act, 1956 read with rule 13 of the Central Sales Tax (Registration and Turnover) Rules, 1957.

Analysis: Goods qualify for concessional treatment only if they are intended for use in the actual activity of generation or distribution of electricity and not merely because they facilitate the business of a power undertaking. The functional test requires an integral and direct nexus with generation or distribution, and commercial expediency by itself does not enlarge the statutory language. Building materials used for labour colonies, office buildings and compound walls are not part of the apparatus employed in generation or distribution of power. A statutory obligation to construct such facilities does not by itself create the requisite connection with the relevant activity. The authorities relied on by the petitioner concerning power-house buildings and allied plant structures did not extend to these items.

Conclusion: The goods used for construction of the labour colony, administrative building and compound wall were not eligible for inclusion in the registration certificate and the claim was rightly rejected.

Ratio Decidendi: For the purposes of section 8(3)(b) and rule 13, only goods intended for use in the actual generation or distribution of electricity, and not goods used for ancillary civil constructions or facilities merely supporting the business, are eligible for inclusion.

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