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TMI Blog1986 (4) TMI 333X X X X Extracts X X X X X X X X Extracts X X X X ..... and if they were sold for non-agricultural purposes, they were machinery or machines other than agricultural machinery as framed? (2) Whether, on the facts and in the circumstances of the case, the Tribunal erred in law in holding that the electric motors were 'machineries and machines' within the meaning of the expression used in serial No. 31 of Notification No. 9134/F.T. dated 1st July, 1959, as amended? (3) Whether, on the facts and in the circumstances of the case, the Tribunal erred in holding that the electric transformers were 'machineries and machines' within the meaning of the expression as used in serial No. 31 of Notification No. 9134/F.T. dated 1st July, 1959, as amended?" 2.. The dispute lies in a narrow compass as to wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing as to whether the pumping sets sold by the dealer were sold for the purposes of use as agricultural implements or otherwise, that a remand order has been passed by the Tribunal. We may straightway refer to a Full Bench decision of the Allahabad High Court in Engineering Traders v. State of Uttar Pradesh [1973] 31 STC 456 (All) [FB], where exactly a similar question arose as to whether pumping sets connected intimately with agricultural and commonly used and understood as agricultural implements, were covered under entry 38 of the schedule to the notification dated 1st April, 1960, issued by the State of Uttar Pradesh. Repelling the argument of the nature that was advanced before us by Mr. Sahay that electric pumps can be used for vari ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urposes only. We, however, do not feel that the ratio of those cases, namely, Pashabhai Patel Co. (P.) Ltd. v. Collector of Sales Tax, Maharashtra State [1964] 15 STC 32 (Born) and Agrawal Brothers v. Commissioner of Sales Tax, Madhya Pradesh [1965] 16 STC 860 (MP), would have any application to the facts of this cass as, in our opinion, it is the common use and parlance in which an appliance is understood and used would decide its fate for application of the item of exemption. We would, therefore, reject the claim of exemption by the dealer and answer question No. (1) in favour of the department and against the dealer. 6.. Now we take up question No. (2) dealing with electric motors. The dealer has succeeded from the Tribunal on this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tions that the machinery could be worked either by electricity or steam or diesel or petrol. In view of this specific description in item No. 31, we feel no hesitation in answering this question in favour of the dealer and against the department. 7.. Now remains the question of transformers. The claim for exemption on transformers is also based upon the exemption provided under item No. 31. The learned Member and Chairman have differed on this question. In this connection we may mention that by a notification dated the 12th September, 1961, item No. 43 was added to the Schedule reading as "electric transformers manufactured in Bihar". As already stated above, the learned Member and the Chairman have differed regarding the claim of the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eme of section 4 of the Act, it is difficult to hold that the notification was meaningless and would have no application to the specified articles mentioned by a separate item so as to confine the exemption to the manufacturers of transformers within the State of Bihar alone, thus withdrawing the exemption on transformers manufactured outside the State of Bihar. In our view, this was a deliberate and purposeful inclusion to give the transformer manufacturers of Bihar an edge over the manufacturers of outside the State, and in that view of the matter we reject the contention just noticed above. The answer to the last question, therefore, is also in favour of the department and against the dealer. 10.. In the result, the answer to questions ..... X X X X Extracts X X X X X X X X Extracts X X X X
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