2017 (3) TMI 51

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..... be said to be erroneous - petition dismissed - decided in favor of assessee. - STRP NO. 197 OF 2016 IN STA. NO. 2319 OF 2014 - - - Dated:- 25-1-2017 - MR. JAYANT PATEL AND MR.P.S. DINESH KUMAR PETITIONER: (BY SRI T.K. VEDA MURTHY, HCGP) ORDER The petitioner revenue has preferred the present petition by raising two questions. But in our view only question no.1 could be considered, which reads as under: 1. Whether in the facts and circumstances of the case, the Tribunal is right in law in holding that the Arecanut peeling/de- husking machine is classifiable under Agricultural implements not operated manually or not driven by animals falling under Entry No.1 of III Schedule to the KVAT Act? 2. The present pet .....

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..... . Arecanut finds place in the definition of Agricultural produce . Director of Horticulture, Government of Karnataka has certified that Arecanut de-husking machine is an Agricultural implement. Arecanut de-husking machine is simple electrically operated and easily opera- table mechanized equipment used and operated by Agriculturists. Arecanut becomes an Agricultural produce only after the Areca-nut berries are peeled/de-husked. It is only after Areca-nut berries are peeled/de-husked it comes to be called as Arecanut . It is only after it is peeled/de-husked, it becomes a Marketable commodity to the Agriculturists. Arecanut peeling machine is used only for peeling/de-husking of Arec .....

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..... estion of law, then also in view the composition of the product and its exclusive use for agricultural purpose, it can be said as an Agricultural Implement . The peeling/de-husking of arecanut berries is an aspect which is directly attributable to the agricultural activity after the crop of berries are harvested, before taken to the market. The aforesaid activity of peeling/dehusking is required to be undertaken and therefore it is for agricultural purpose. Under these circumstances, the view taken by the Tribunal that the product namely, arecanut peeling/de-husking machine is classifiable under Agricultural implements not operated manually or not driven by animals cannot be said to be erroneous. 10. Resultantly, even if the questi .....

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