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TMI Blog1969 (9) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... inery? (3) Are such of the oil-engines and centrifugal pumps as have been sold to agriculturists for bona fide agricultural purposes, agricultural machinery for the purposes of item 44 of Part II of Schedule II appended to the M.P. General Sales Tax Act, 1958? 2.. The society-The Madhya Pradesh State Co-operative Marketing Society, Jabalpur-is a registered dealer under the Madhya Pradesh General Sales Tax Act, 1958. The assessment in question is for the period from 1st July, 1959 to 30th June, 1960. The only items regarding which the abovesaid questions are framed are: (i) Sales to the extent of Rs. 2,76,416.00 on account of transactions under the cotton pool scheme at the Burhanpur branch of the society, and (ii) Sales of the centr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it is liable to be regarded as a dealer and would be liable to be taxed under section 4 of the Act for sales or supplies of goods effected in Madhya Pradesh." 4.. Shri Shrivastava, learned counsel for the assessee, however, urged that the finding of the Assistant Commissioner that the society had complete domination and control and full authority in selling the cotton in the pool, is not justified from the facts on record. He urged that the possession and control over the cotton, which was pooled, remained with the agricultural associations and not with the marketing society. He also urged that the price offered at the auctions held by the marketing society was to be approved by the agricultural associations or by the owner of the cotton ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... association shall sell cotton in the form of raw cotton by public auction at which prominent mill-owners as well as traders shall be invited. In case the public auction does not bring in a reasonable price, the associations will invite tenders from purchasers. These tenders are to be opened by the secretary of the associations in the presence of the managing committee of the associations and a decision is to be taken whether cotton should be sold and if so, to whom. This decision shall be subject to the approval of the marketing society or of such person authorised by it in this behalf. This again shows that the agricultural associations act under the guidance and supervision of the marketing society. In case, both the methods, referred to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... West Bengal[1961] 12 S.T.C. 535. relied on by the assessee is not of any help to it. In that case, the assessee was a company incorporated under the Indian Companies Act and carried on the business of an auctioneer. The business of the assessee in that case was that of bringing the seller and buyer together for effecting the sale against a certain rate or percentage of remuneration. In that case, it was held that an auctioneer cannot be included in the definition of the dealer as he could not be held to be a person who effected the sales. The business of the auctioneer being to bring the buyer and seller together, though temporarily, the domination of the goods may remain with him and the stroke of his hammer may conclude the contract. We h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ere taxable under the M.P. General Sales Tax Act, 1958. Therefore, the answer to the first question must be given in the affirmative. 9.. As to the second question, the Tribunal found that the centrifugal engines and pumping sets were sold by the marketing society not only to the agriculturists but to other persons as well for the purposes other than agriculture. This finding is not disputed before us. It has been held by a Division Bench of this court in Agrawal Brothers v. Commissioner of Sales Tax[1965] 16 S.T.C. 860., that a tractor, though it could be used on the farms could not be treated as an "agricultural machinery", as it could also be used as haulage in factories, at air-fields etc. The test laid down in that case was that it w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the oil-engines and pumps disposed of by it were known in the commercial world as the "agricultural machinery". The finding of the Tribunal is otherwise. The second question must, therefore, be answered in the negative. 10.. Once it is held that the oil-engines and centrifugal pumps sold by the society were not agricultural machinery and they are taxable under item 44 of Part II of Schedule II, their taxability under item 44 does not cease only because some such engines and centrifugal pumps were purchased by the agriculturists. The taxability does not depend on the person who purchases them, but it depends on the character of the goods sold. The third question is ill-conceived. Item 44 deals with all machineries or machines work ..... X X X X Extracts X X X X X X X X Extracts X X X X
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