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TMI Blog1987 (3) TMI 506X X X X Extracts X X X X X X X X Extracts X X X X ..... t of the liabilities relating to the U.P. sales tax as well as Central sales tax. The Assistant Commissioner (Judicial) held that the double plated rims are liable to be taxed as agricultural implements and not as unclassified item as held by the Sales Tax Officer. Therefore, the Commissioner of Sales Tax preferred appeals before the Sales Tax Tribunal, which have been disposed of by the aforesaid consolidated impugned order dated 24th September, 1986. In the said order the Sales Tax Tribunal after referring to the case of Anil Industries v. Commissioner of Sales Tax [1987] 65 STC 73; 1986 UPTC 552, decided by this Court on 29th March, 1985 has held by implication that "double plated rims" are unclassified items. The Sales Tax Tribunal has under the impugned order inferred that since the said item was held by the High Court in the case of Anil Industries [1987] 65 STC 73 (All.); 1986 UPTC 552 to be exempt under the notification dated 14th November, 1980, hence for a period prior to that date it is not exempt and liable to be taxed as unclassified item. The Tribunal, therefore, allowed the appeals filed by the Commissioner of Sales Tax and restored the order of the assessing authori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at arises is as to what is the difference between the notification issued by the State Government under the aforesaid two sections. This will be clear only if the relevant notifications as in force in the two assessment years in dispute are taken into consideration. The first of these notifications to be noted is Notification No. ST-911/X dated 31st March, 1956 which read as under: "Notification No. ST-911/X, dated 31st March, 1956 (Published in the U.P. Gazette Extraordinary, dated 31st March, 1956). In exercise of the powers conferred by section 4 of the U.P. Sales Tax Act, 1948, as amended from time to time, and in supersession of all previous notifications granting any exemption under the said section relating to any persons or class of persons, or goods, or class of goods, not being goods specified in List I below, the Governor of Uttar Pradesh is pleased to direct that with effect from April 1, 1956, the goods specified in List II hereunder shall alone be exempt from payment of tax. * * * LIST II 1.. Agricultural implements worked by human or animal power, namely- Khurpi (hoe), dibbler, spade, hassia (sickle), garden knife, axe, gandasa, chaff-cutter, shears, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ), the Governor is pleased to make the following amendment in Notification No. ST-911/X, dated March 31, 1956, with effect from the date of publication of this notification in the Uttar Pradesh Gazette. AMENDMENT In item No. 1 of List II of the aforesaid notification (as substituted by Notifications Nos. ST-3297/X-250(1)-58, dated June 9, 1964 and ST-2352/X950(1)-58, dated August 12, 1966), for the words 'bullock carts' the words 'carts pulled by bulls, bullocks and buffaloes' shall be substituted." Now adverting to the notification issued from time to time by the State Government under section 3-A of the U.P. Sales Tax Act relevant for the two years in dispute to begin with we find Notification No. ST-1365/X990-1956, dated 1st April, 1960. The same in so far as is material for my purposes reads as follows: "In exercise of the powers conferred by section 3-A of the Uttar Pradesh Sales Tax Act, 1948 (U.P. Act No. XV of 1948), as amended from time to time, the Governor of Uttar Pradesh is pleased to- Supersede, with effect from April 1, 1960, all the previous notifications so far as they relate to the goods mentioned in column 2 of the Schedule hereto and the rates of sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5, 1971, the turnover in respect of the goods specified in column II of the said Schedule shall be liable to tax at the point of sale specified in column III of the said Schedule at the rate specified against each in column IV of the said Schedule: SCHEDULE 'M' stands for sale by the manufacturer in Uttar Pradesh. 'I' stands for sale by the importer in Uttar Pradesh. -------------------------------------------------------------------------------Serial Description of goods Point at which Rate of tax No. tax is levied -------------------------------------------------------------------------------- I II III IV -------------------------------------------------------------------------------- 1. Agricultural implements, other M or I 3 per cent." than implements worked by human or animal power, including their parts and accessories other than tyres and tubes. -------------------------------------------------------------------------------- This last notification dated 15th November, 1971 was further amended as under: "Notification No. ST-II-6203/X-1012-1972, dated 29th September, 1972. (Published in the U.P. Gazette Extraordinary, dated 29th September, 1972.) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ist of agricultural implements has been given, whereas in respect of the notifications issued under section 3-A of the Act, no such exhaustive list is there and the words used are "agricultural implements" including their parts and accessories, etc. The other noteworthy point of difference is that in the notifications issued under section 4 of the Act, emphasis is on the grant of exemption to such agricultural implements, a detailed list of which has been set out, as are worked by human or animal power. The various notifications issued under section 3-A of the Act, where liability is attracted on the basis of single point expressly relate to such agricultural implements, etc., other than those worked by human or animal power, i.e., which are covered by notifications under section 4 of the Act regarding total exemption of liability to U.P. sales tax. Since in the present revisions I am not concerned with the question as to whether the "double plated rims" is an item which is exempted under section 4 of the Act in respect of the two years in dispute, I do not propose to deal with the question of exemption of the aforesaid item in judgment. Therefore, it is crystal clear that the ra ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal that the double plated rims are used in vehicles driven by power. Taking into consideration the aforementioned findings of the Tribunal as well as the Assistant Commissioner (Judicial) on the mooted question, the inference that follows, to my mind, is that the "double plated rims" is an item covered by the entry "agricultural implements" as it occurs in the notifications in question which are relevant for the two assessment years in dispute and were issued under section 3-A of the Act. At this stage it is also pertinent to take note of the argument raised by the Standing Counsel to the effect that there is no material to show exclusive user of double plated rims in the vehicles driven by power and in absence thereof it cannot be held to be an "agricultural implement". That may be so but a Full Bench of this Court in the case of Engineering Traders v. State of U.P. [1973] 31 STC 456; 1973 UPTC 91 in paragraph 11 has held as under: ".....In order that an appliance may be an agricultural implement, the real test is not that it should be exclusively used for agricultural purposes but that it should be commonly so used and it should be intimately and directly connected wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntioned in the margin (here given below), as amended from time to time, and, (2) to direct that, with effect from the aforesaid date the tax payable under the said Act of 1956 by any dealer registered under section 7 thereof, having his place of business in Uttar Pradesh in respect of the sale by him from such place of business of the goods mentioned in column 2 of the List below in the course of inter-State trade or commerce shall be calculated at the rate mentioned against each in column 3 of the said list: LIST ------------------------------------------------------------------------- Serial Description of goods Rate of tax No. ------------------------------------------------------------------------- 1 2 3 ------------------------------------------------------------------------- 1. Agricultural implements (other than those 4 per cent." worked by human or animal power) and tractors, including parts and accessories (other than tyres and tubes) of such implements or tractors. ------------------------------------------------------------------------- Here again we find that the words used are the same as in the notifications issued as mentioned above under sectio ..... X X X X Extracts X X X X X X X X Extracts X X X X
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