Intended use governs sales tax exemption for goods certified for electricity generation, not proof of actual use.

The expression "for use" in the sales tax exemption clause was construed to mean intended for use, not actual use. Certificates issued by the Electricity Board showing that cement was required for generation or distribution of electrical energy were sufficient, and there was no evidence that the certificates were false or fraudulently obtained. Later use of some cement for other activities did not defeat the exemption. The assessee therefore was not required to prove actual use by the Board, and the exemption remained available.

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Issues: Whether the sales of cement to the Electricity Board were exempt under Section 5(2)(a)(iv) of the Punjab General Sales Tax Act when the Board issued certificates stating that the goods were required for use in the generation or distribution of electrical energy, and whether the assessee had to prove actual use of the goods for that purpose.

Analysis: The expression "for use" in the exemption clause was construed to mean "intended for use" and not "actually used". The relevant certificates issued by the Electricity Board showed that the cement was intended for a purpose directly connected with the generation or distribution of electrical energy. There was no material to show that the certificates were false or fraudulently obtained in collusion with the Board. The mere fact that some cement was later used for other activities did not affect the availability of the exemption.

Conclusion: The assessee was not required to prove actual use of the cement by the Board for generation or distribution of electrical energy, and the exemption was available.

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