- (1.) THE assessee, Rama Iron Industries, Hansi, is engaged in the manufacture of cart wheels and is a registered dealer under the Haryana General Sales Tax Act, 1973 (hereinafter referred to as "the Act"), as well as under the Central Sales Tax Act, 1956 (hereinafter referred to as "the Central Act" ). The Government of Haryana vide Notification No. S. O. 8/h. A. 20/73/s. 63/sch. B/item 21/74, dated 1st February, 1974, in entry B-16 mentioned cart as an agricultural implement. However, the cart wheels do not figure in the aforesaid agricultural implements. The assessee filed four quarterly returns for the assessment year 1973-74 before the Assessing Authority and claimed exemption from the payment of tax on cart wheels, contending that the cart wheels are covered under the expression "cart" figuring in entry B-16 of the above referred notification, but the Assessing Authority dismissed his plea and held that the cart wheels are exigible to sales tax, vide its order dated 31st July, 1976. The dealer then filed an appeal before the Deputy Excise and Taxation Commissioner (Appeals), Rohtak Circle, which was also dismissed on 14th February, 1977. He then went in second appeal before the Tribunal, who also rejected his appeal vide order dated 30th January, 1980 (anndxure C ). Still being not satisfied with the order of the Tribunal, the dealer claimed reference to the High Court under Section 42 (1) of the Act. Accordingly, the Member, Sales Tax Tribunal, Haryana, had referred the following question for the opinion of this Court : "whether the expression 'cart' as mentioned in entry No. B-16 of the list of agricultural implements notified by the Government, vide Notification dated 1st February, 1974, also includes 'cart wheels' especially when clear distinction has been observed between an article and its parts ?" Mr. D. S. Bali, learned Senior Advocate for the assessee, assisted by Mr. Rakesh Verma, Advocate, contended that the expression "cart" would include all its component parts. He also maintained that a cart would not be complete without its wheels. Thus, he maintained that by necessary implication the legislature intended to exempt all the component parts of cart as agricultural implements from the mischief of imposing sales tax. Reliance in this regard was placed on the decision of the Madras High Court in Spheroidel Castings Ltd. v. State of Tamil Nadu [1977] 40 STC 596. Mr. S. K. Sood, District Attorney, Haryana, learned counsel for the State of Haryana, on the other hand, relying upon the ratio of the decision of the Apex Court in Annapurna Carbon Industries Co. v. State of Andhra Pradesh [1976] 37 STC 378, contended that a general review of the scheme of taxation contained in the Act certainly reveals that the legislature never intended to include the cart wheels in the expression "cart".
(2.) ENTRY at serial No. 21 of Schedule "b" of the Act, empowers the State Government to specify agricultural implements by notification in the Official Gazette for being exempted from the imposition of sales tax. Schedule "b" was appended to give effect to the provisions of Section 16 of the Act. Proviso to Sub-section (1) of Section 6 reveals that the provisions of Sub-section (1) shall not apply to the dealer who exclusively deals in goods specified in Schedule "b". The provisions of Section 16 (1) deal with the levy of surcharge, and the proviso thereto exempt the levying of such surcharge in respect of the declared goods under this Act. Sub-section (2) of this section provides that the same provisions of this Act shall apply in relation to the surcharge payable under Sub-section (1) as they apply to the tax payable under this Act.
(3.) IN exercise of these powers, the State of Haryana issued Notification on 1st February, 1974, which reads as under : "in exercise of the powers conferred by the item relating to agricultural implements against serial No. 21 of Schedule B to the Haryana General Sales Tax Act, 1973, and in supersession of all previous orders or notifications issued in this behalf, the Governor of Haryana hereby notifies the following agricultural implements, namely :-'a, Ordinary agricultural implements-1. Hand hoe or khurpa. 12. Dibbler. 2. Sickle. 13. Gandasa. 3. Spade. 14. Puddler.;