COMMISSIONER OF SALES TAX Vs. ANIL IRON WORKS
HIGH COURT OF MADHYA PRADESH
COMMISSIONER OF SALES TAX
ANIL IRON WORKS
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(1.) AT the instance of the Commissioner of Sales Tax, Madhya Pradesh, the Sales Tax Tribunal (Board of Revenue) has referred the following question for our decision : Whether or not item No. 1 hoes (all kinds) in S. R. D's Notification No. 736-3694-V-SR dated the 1st April, 1959, covers the implement commonly known as 'phawada' in Hindi and is thus an agricultural implement which is exempt from sales tax under entry No. 1 of Schedule I of the M. P. General Sales Tax Act, 1958 ?
(2.) THE non-applicant-firm manufactures certain implements popularly known in this part of the country as "bombay type of phawadas". This implement is made out of a square or oblong iron plate with an eye at the top through which a wooden handle is inserted. The phawadas are generally used by building contractors and by road builders for collecting earth or other material as also for mixing sand, cement, lime etc. with boulders or gitti. These implements are also used in mines for collecting ore that is dug out as well as for collecting earth. These implements no doubt can also be used in agricultural operations, though they can be used for the limited purposes of bunding the fields and cutting the embankments.
(3.) SECTION 10 of the M. P. General Sales Tax Act provides that no tax shall be payable on the sales or purchases of goods specified in the second column of Schedule I subject to the conditions and exceptions, if any, set out in the corresponding entry in the third column thereof. Item No. 1 of the First Schedule reads : S. No. Description of goods. Conditions and exceptions subject to which exemption has been allowed. 1. Agricultural implements worked or operated exclusively by human or animal agency specified by the State Government by notification in the Official Gazette. The State Government by Notification No. 736-3694-V-SR dated 1st April, 1959, published a list of exempted articles under item No. 1 of the First Schedule. Serial No. 1 of the notification mentions "hoes (all kinds ).;
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