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TMI Blog2016 (10) TMI 786X X X X Extracts X X X X X X X X Extracts X X X X ..... r Sahas Roy [1957 (5) TMI 6 - SUPREME Court] where it was held that Nevertheless there is present all throughout the basic idea that there must be at the bottom of it cultivation of land in the sense of tilling of the land, sowing of the seeds, planting, and similar work done on the land itself. This basic conception is the essential sine qua non of any operation performed on the land constituting agricultural operation. If the basic operations are there, the rest of the operations found themselves upon the same. But if these basic operations are wanting the subsequent operations do not acquire the characteristic of the agricultural operations.” Whether the goods fall entry-58A which pertains to plant and machinery? - Held that: - The term 'plant' in common parlance has thus acquired a definite meaning and would normally mean a self-contained area, structure or building containing one or more units with infrastructure such as an administrative section or storage or a laboratory, a building machinery etc. taken together that are used in the unit of industrial production are also categorized as plant. The fishing boat would certainly not fall within this description. The entry- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act,2003 (for short 'the Act') and the Central Sales Tax Act. The respondent is dealing in 'Out Board Marine Engine' and its parts of Yamaha brand, of which the respondent is authorized dealer. For the period from 1.4.2006 to 31.3.2007, the Commercial Tax Officer, Veraval carried out the assessment in case of the respondent and levied VAT @ 12.5% treating the goods under the residuary entry. In the process, the Assessing Officer relied on a determination order dated 16.4.2007 passed by the Joint Commissioner in case of one M/s.Gujarat Matsyaudhyog Kendriya Sahakari Sansthan Ltd. 3. Against the said order of assessment dated 28.3.2011, the assessee filed appeal before the Deputy Commissioner of Commercial Tax, who dismissed said appeal by an order dated 28.11.2011. Upon which the assessee approached the Gujarat Value Added Tax Tribunal (for short 'the Tribunal'). Before the Tribunal, the assessee contended that the determination order in case of M/s.Gujarat Matsyaudhyog Kendriya Sahakari Sansthan Ltd. was carried in appeal before the Tribunal, who allowed the appeal and held that the goods would fall under entry-42A as agricultural inputs. The case of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icultural inputs which may be notified by the State Government in official gazette, would be covered under entry- 42A. At the relevant time, the notification dated 29.3.2006 held the field and notified the goods of following description as agricultural inputs for the purpose of Entry-42A. SCHEDULE Sr.No. Description of goods 1 Oil; engine including Diesel oil engine upto 15HP 2 Drip Irrigation Equipments 3 Sprinkleers 4 Micro Irrigation System Equipments 5 Tractor's Trolley 6. The first entry in the said schedule itself pertains to Oil Engine including Diesel Oil Engine upto 15 HP. The remaining entries were Drip Irrigation Equipments, Sprinkleers, Micro Irrigation System Equipments and Tractor's Trolley. 7. In essence, entry-42A pertained to agricultural inputs. However, for being included in entry-42A, such agricultural inputs had to be those which may be specified by the State Government by a notification published in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vate personally' means to cultivate on one's own account - (i) by one's own labour; or (ii) by the labour of one's family, or (iii) by servants on wages payable in cash or kind (but not in crop share), or by hired labour under one's personal supervision or the personal supervision of any member of one's family. 9. It can thus be seen that for the purpose of VAT Act, the term 'agriculture' with all its grammatical variations and cognate expressions would include floriculture, horticulture, the raising of crops, grass or garden produce, and grazing. By definition the activities of dairy farming, poultry farming, stock breeding or the mere cutting of wood or grass or gathering of fruits are excluded from such expression. The term 'agriculturist' is defined as to mean a person who cultivates land personally for the purpose of agriculture. The term 'to cultivate' is defined as to mean to carry on any agricultural operation and the term 'to cultivate personally' is defined as to mean to cultivate on one's own account; by one's own labour; or by the labour of one's family, or by servants on wages payable in c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s under : PLANT (Production facility, Workshop means a relatively self-contained area, structure or building containing one or more units with auxiliary and associated infrastructure, such as (i) small administrative section; (ii) storage/handling areas for feedstock and products; (iii) effluent/waste handling/treatment area; (iv) control / analytical laboratory' (v) first aid service / related medical section; and (vi) records associated with the movement into, around and from the site, of declared chemicals and their feedstock or product chemicals formed from them, as appropriate (Chemical Weapons Convention Act (34 of 2000), (verification annex) 6(b)] Plant means the fixtures, machinery, tools, apparatus, appliances etc., necessary to carry on any trade or mechanical business, or any mechanical operation or process'. Fixtures, implements, machinery used in industrial process (S.2(b)(xii), Coal Mines Provident Fund and Miscellaneous Provisions Act (46 of 1948)]; a young tree, vine or shrub lately planted or suitable for planting (S.14(v), Central Sales Tax Act (74 of 1956)] The building, machinery, etc. taken together that are used in a unit of industrial pro ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n a sense the basic tools of the assessee's trade having, a fairly enduring utility, though owing to technological advances they might or would in course of time become obsolete. We are, therefore, clearly of the view that the capital asset acquired, by the assessee, namely, the technical know-how in the shape of drawings, designs, charts, plans, processing data and other literature falls within the definition of 'plant' and therefore a depreciable asset. 14. The said observations were made however, in the background of the provisions of the Income-tax Act in the context of depreciation allowance in terms of Section 32 of the Income-tax Act. Section 43 of the Income-tax Act,1961 defines the term 'plant' in wide terms providing that plant would include ships, vehicles, books, scientific apparatus and surgical equipments used for the purpose of the business. Thus, by a specific definition the term 'plant' has been given a wide meaning. The VAT Act does not contain any such expanding definition and it would not be possible to import a definition from another statute and to expand the term beyond its common connotation. 15. The entry-58A refers to plan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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