1963 (4) TMI 49 - HC - VAT and Sales Tax

Summary

Issues:
Whether centrifugal water pumps used for pumping water from tube wells are exempt from tax as 'agricultural implements' under a specific notification.

Analysis:
The High Court was tasked with determining whether centrifugal water pumps qualify as 'agricultural implements' for tax exemption under a particular notification. The Court emphasized that the notification did not explicitly define 'agricultural implements.' It referred to previous judgments to establish that an implement used in an agricultural process is considered an agricultural implement. However, it clarified that merely pumping water from wells is not an agricultural process in itself. The Court distinguished between a persian wheel and a centrifugal water pump, highlighting that the former directly irrigates land while the latter is used solely for lifting water from wells, which may have various purposes beyond irrigation.

The Court also discussed the interpretation of 'implements of husbandry' from Corpus Juris Secundum, emphasizing that for an item to be considered an agricultural implement, it must be essential for farming activities. The judgment referenced a case where a persian wheel was deemed an agricultural implement due to its direct irrigation function, contrasting it with the centrifugal water pump's primary purpose of water lifting. Additionally, the Court examined precedents from other jurisdictions but concluded that none supported the classification of centrifugal water pumps as agricultural implements.

In the final decision, the Court answered the question in the negative, ruling that centrifugal water pumps do not qualify as agricultural implements for tax exemption. The judgment directed the dissemination of copies to relevant authorities and awarded costs to the Commissioner of Sales Tax from the assessee. The reference was thus resolved against the assessee, affirming that centrifugal water pumps are not exempt from tax under the agricultural implements category.