1985 (11) TMI 224 - HC - VAT and Sales Tax

Summary

Issues Involved:
1. Whether the word "trailer" includes tractor-trolleys.
2. Whether tractor-trolleys are exempt under section 4(1) of the Rajasthan Sales Tax Act as agricultural implements.
3. Whether tractor-trolleys fall within the scope of entry No. 7 of the Notification dated September 6, 1977.
4. Whether sales or purchases of tractor-trolleys were taxable at 4 per cent only.

Detailed Analysis:

Issue 1: Whether the word "trailer" includes tractor-trolleys.
The Court analyzed the definitions of "trailer" and "trolley" from Chambers Twentieth Century Dictionary and Webster's Dictionary. The term "trailer" refers to a cart, wagon, or large van designed to be pulled by an automobile, truck, or tractor. The term "trolley" refers to a wheeled carriage or basket that runs suspended from an overhead track. The Court concluded that the word "trailer" as used in entry No. 7 of the Notification dated September 6, 1977, does not include tractor-trolleys. The Board's conclusion that tractors do not fall within entry No. 7 and that the word "trailers" does not include tractor-trolleys was upheld.

Issue 2: Whether tractor-trolleys are exempt under section 4(1) of the Rajasthan Sales Tax Act as agricultural implements.
The Court examined the history of the entry "agricultural machinery and implements" and noted that a tractor-trolley is not specified as an agricultural implement in the notification. Citing various cases, the Court determined that a tractor-trolley is not an agricultural implement because it is neither apparatus nor implement nor equipment for carrying out agricultural operations. The State Government did not specify tractor-trolleys as agricultural implements, and thus, they are not exempt under section 4(1) of the Act.

Issue 3: Whether tractor-trolleys fall within the scope of entry No. 7 of the Notification dated September 6, 1977.
The Court reviewed entry No. 7, which relates to various types of motor vehicles and includes "all varieties of trailers by whatever name known." It was concluded that the entry refers to trailers attached to motor vehicles and not to tractor-trolleys. Therefore, tractor-trolleys do not fall within the scope of entry No. 7 of the Notification dated September 6, 1977.

Issue 4: Whether sales or purchases of tractor-trolleys were taxable at 4 per cent only.
The Court held that since tractor-trolleys are not included in the expression "trailers" as used in entry No. 7, the sales tax at the rate of 10 per cent is not applicable. Tractor-trolleys are also not spare parts of tractors, so entry No. 17, which prescribes a 4 per cent tax rate for tractors and spare parts, is not applicable. As there is no specific entry dealing with tractor-trolleys, they fall under the residuary entry No. 19 of Table 17, which prescribes a tax rate of 7 per cent.

Conclusion:
1. The word "trailer" does not include tractor-trolley.
2. Tractor-trolleys are not "agricultural implements" and are not exempt under section 4(1) of the Act.
3. Tractor-trolleys do not fall within the expression "all varieties of trailers by whatever names known" used in entry No. 7 of the Notification dated September 6, 1977.
4. Tractor-trolleys are not taxable at the rate of 4 per cent; the applicable tax rate is 7 per cent under entry No. 19 of Table 17.

The reference, treated as a revision under section 15 of the Act as substituted by the Amendment Act, is disposed of accordingly, with parties bearing their own costs.