9911796707
TMI Blog1963 (3) TMI 42X X X X Extracts X X X X X X X X Extracts X X X X ..... o. Description of goods. Rate of Sales Tax. Rate of General Sales Tax. Rate of Purchase Sales tax 80 All goods other than those specifried from time to time in Schedule A and in the preceding entries. 2 nP. In the rupee. 3 nP. In the rupee. 2 nP. In the rupee." It was the contention of the applicant before the Sales Tax Authorities as well as the Sales Tax Tribunal that a tractor was an agricultural machinery within the meaning of entry No. 9 under Schedule B of the Act and, therefore, was taxable at the rates mentioned under entry No. 9. That entry reads:- "Serial No. Description of goods. Rate of Sales Tax. Rate of General Sales Tax. Rate of Purchase Sales tax 9 "Agricultural machinery and implements or parts thereof incl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as been placed by the applicant in support of its contentions, were that at the time of clearance of these tractors through customs, these goods were treated as import-duty free, being agricultural tractors. He further relied on the fact that the import license granted to the applicant by the Import Controller was for the purchase of agricultural tractors. He also referred to certain catalogues to show that tractors are also used for agricultural operations. The Additional Collector of Sales Tax held that even assuming that tractors were sold for being used for agricultural operations, that would not mean that the articles sold fell within entry No. 9. According to the Additional Collector, agricultural machinery would ordinarily mean that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are covered by entry No. 9 of Schedule B to the Act of 1953. " Mr. Patel appearing for the applicant contends that the expression " agricultural machinery " occurring in entry No. 9 is not in any manner qualified. The entry does not say that machinery used for agricultural purposes would be taxed under entry No. 9, but, on the other hand, the entry mentions " agricultural machinery " without qualifying it in any manner. It must, therefore, be held that any machinery which could be used for the purpose of agriculture is an agricultural machinery within the meaning of entry No. 9. It is not disputed that a tractor is a machinery. It is also not in dispute that the tractor could be used for agricultural purposes. The tax on the sale of tract ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vicinity of operations. It is also used for clearing small trees, for pulling or pushing loads, a power unit for winches and hoists and a moving mount for bulldozer blades, side booms and front-end bucket loaders. The Tribunal has also observed that tractors have been used on all of India's Five Year Plan Projects for clearing jungles, ploughing kans lands, digging canals or building dams, roads and pipe lines or for moving earth for soil erosion or flood control, etc. It would be seen that the use of tractors is for many other purposes than agriculture. In short a tractor is used wherever a large percentage of available power is required to be used and in that sense a tractor may also be used for the purpose of agriculture when for the pa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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