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TMI Blog2010 (7) TMI 893X X X X Extracts X X X X X X X X Extracts X X X X ..... directly used in agricultural operations. If these types of machineries are excluded from the purview of the Schedule entry 1, Part I of Schedule C then the bio-fertilizer producing machine by no stretch of imagination can be said to be a machine falling under Schedule entry 1, Part I of Schedule C. The Tribunal has rightly observed that the purchaser was interested in purchase of composting machine and not soil treatment machine as now claimed by the applicant-assessee. What is sold is composting machine. It is, thus, nothing but a machine falling under the Schedule entry 135, Part II Schedule C attracting 13 per cent sales tax. The view taken by the Tribunal cannot be faulted. Against assessee. - - - - - Dated:- 20-7-2010 - DAGA V.C. A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sed to get the desired result. The agriculturist is not required to provide any other power. He is able to manufacture and produce manure for his land using this machine. It was thus contended that the said machine described as compost turner enviro 700 , is a mechanical harrow driven by tractor PTO. The machine converts agricultural, horticultural, solid and liquid wastes into basic energy bio-fertilizer as such it is an agricultural machine. The learned Commissioner of Sales Tax after referring to the relevant Schedule entry 1 of Part I of Schedule C and the entry 135, Part II of Schedule C has held that the impugned product is a species of machinery and is not specified in any other entry as such covered in Schedule entry 135, Part I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... C observing that if an article is sold as belonging to one specific category, then it must be treated as a sale falling in that category even though it answers the description of another category. The Tribunal, thus, came to the conclusion that the impugned machine was not an agricultural machine/implement, hence not covered by entry 1, Part I, Schedule C but covered by the Schedule entry 135, Part II of Schedule C attracting sales tax at 13 per cent. The applicant-assessee not satisfied with the order of the Tribunal applied for reference under section 61(1) of the BST Act, with a request to refer the question of law extracted in the opening part of this judgment for authoritative adjudication, which revolves around entries (1) 1, Part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed with the land soil. It was further stated in the affidavit that the machine sold could only be used on an agricultural land and that it had no other use. The purpose of the machine was to improve the agricultural soil and simultaneously, recycle agricultural waste, including spent wash. Mr. Surte, further argued that the Tribunal has failed to appreciate the submissions made by the applicant (the original appellant) during the course of hearing of the appeal on September 3, 2003, which were subsequently reduced to writing and filed before the Tribunal. It was submitted that the machine was basically an aerotiller. The meanings of the expressions tiller and filling were explained in detail, which has a nexus with agricultural opera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nsel appearing for the Revenue needs acceptance. The machine known as bio-fertilizer producing machine can hardly be said to be machine meant for agricultural machinery or implement. It is, no doubt, true that the said machine can be used for agricultural purposes but that by itself cannot be a criteria for deciding as to whether or not it is an agricultural machine. The said bio-fertilizer is, normally, sold to the sugar factories and not to agriculturists directly. If one turns to Schedule entry 1, Part I of Schedule C it reads as under: Entry CI-1 Agricultural machinery and implements other than tractors, trailers, semi-trailers, oil engines, electric motors, pumps, electric pumping sets, capacitors of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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