HINDUSTAN BROWN BOVERI LTD. ETC. vs STATE OF GUJARAT

The Supreme Court held that under Section 49(2) of the Gujarat Sales Tax Act, 1969, the State Government can exempt sales tax on goods sold to an electrical undertaking if certain conditions are met. The Court clarified that the definition of 'taxable goods' under Section 2(33) includes goods that are not exempt under Section 5 or related notifications. The appeal was dismissed as the appellants violated the conditions of Form 19 by selling manufactured goods to the electrical undertaking, which led to the imposition of purchase tax under Section 16 of the Act.