RAINBOW STEELS LTD. AND ANR. vs COMMISSIONER OF SALES TAX, UTTAR PRADESH AND ANR.

The Supreme Court held that the sale of a thermal power plant in running condition does not fall under the category of 'old, discarded, unserviceable or obsolete machinery' as per the notification issued under Section 3A of the Uttar Pradesh Sales Tax Act, 1948. The Court applied the principle of noscitur a sociis, determining that the adjective 'old' should be interpreted in a manner analogous to the more specific terms 'discarded, unserviceable or obsolete'. Consequently, the appeal was allowed, and the order of the Commissioner and the High Court was set aside.