1995 (1) TMI 335 - HC - VAT and Sales Tax

Summary

Issues:
Interpretation of entry 18(i) of Part I of Schedule C of the Bombay Sales Tax Act, 1959 regarding classification of diesel engine pumping sets as agricultural machinery.

Detailed Analysis:

1. Background:
The case involved a reference under section 61(1) of the Bombay Sales Tax Act, 1959, where the question was whether diesel engine pumping sets sold by the assessee were covered by entry 102 of Part II or entry 18 of Part I of Schedule C of the Act.

2. Contentions and Facts:
The assessee, a partnership firm manufacturing diesel engine pumping sets, argued that the sets were designed for agricultural purposes and predominantly used for watering fields. The Commissioner and the Tribunal held that the sets did not fall under entry 18(i) of Part I of Schedule C as "pumps" were excluded from the definition of "agricultural machinery."

3. Legal Interpretation:
The critical issue was whether "pumps" and "pumping sets" were interchangeable or distinct commodities. The Tribunal's interpretation excluded pumping sets based on the exclusion of pumps under entry 18(i). However, the Court analyzed the components of the sets, highlighting that a pump was just one component, along with a diesel engine. The legislative exclusion of pumps and pumping sets as separate entities supported the distinction.

4. Judgment and Conclusion:
The Court concluded that "pumps" and "pumping sets" were distinct commercial commodities, with pumps being components of pumping sets. As a result, the diesel oil pumping sets sold by the assessee were deemed to fall under entry 18(i) of Part I of Schedule C, not entry 102 of Part II. The question was answered in the negative, favoring the assessee, with no order as to costs.

5. Outcome:
The Court's interpretation clarified the classification of diesel engine pumping sets as agricultural machinery under entry 18(i), emphasizing the distinction between pumps and pumping sets in the context of the legislative provisions of the Bombay Sales Tax Act, 1959.