- (1.) THIS is a revision under sec. 14 (2) of the Rajasthan Sales Tax Act, 1954 against order dated 7-6- 71 of the Additional Commissioner, Commercial Taxes, Rajasthan, Jaipur which has been passed under sec. 12-A of the Rajasthan Sales Tax Act. The following question was posed for determination by the applicant firm before the learned Addl Commissioner, Commercial Taxes, Rajasthan Jaipur - "whether the "tiller" and "harrow" come under the definition of ploughs or not. Under sec. 4 (1) Column No. 8 (b) of the Rajasthan Sales Tax Act "the agricultural machinery and implements" are exempt. Hence "tiller" and "harrow" are exempt or not. If taxable at what rate ?" The Additional Commissioner held that the tiller was not covered within the definition of agricultural machinery and implements and that it was taxable at the rate of 7 per cent at the first point. He has not given any finding about the harrow because he persuaded the applicant firm to remove this point for consideration before him. The applicant firm has, however raised determination in respect of both tiller and harrow in the resent revision. We have heard learned counsel for both the parties and perused the record. The learned counsel for the applicant has drawn our attention towards item 8 of the Schedule appended to the Rajasthan Sales Tax Act, 1954 in which the agricultural machinery and implements including parts of such machinery and implements have been exempted from the imposition of sales tax under sec. 4 of the Act. THIS exemption is subject to the following conditions and exceptions as mentioned against entry No. 8 in column 3 which runs as follows: - "the following shall be deemed to be agricultural machinery and implements for the purpose of this item; namely : - (1) Ploughs (2) The teeth of the plough (3) Spade (4) Pick i. e. Khudali (5) Chaff-cutter (6) Khurpi (7) Axe (8) Khanta (9) Persian wheel and spare parts (10) Belcha (11) Gandasa (12) Patela There was a further item marked (13) Tractor, when exclusively used for agricultural purposes but the same has been omitted by Rajasthan Act No. 13 of 1963 The learned counsel contends that the Rajasthan High Court has laid down rule for interpretation of exemption clause in Taxation Laws in "m/s. Chauhan Bhandar vs. A. S. T. O. Beawar" (1965 R. R. D. 3 ).
(2.) THEIR Lordships have have held that the interpretation clause should not be so liberal as to promote fraud or allow evasion of tax by dishonest devices but nevertheless the interpretation should not be so narrow or unreasonable by importing limitations not inserted by Legislature, which may defeat its very purpose' Consequently he argues agricultural machinery and implements meant for promoting agricultural operations in Rajasthan were exempted from sales tax by the Legislature and so tiller and harrow which are merely improved versions of the ordinary plough should have been treated as part of agricultural and non-agricultural purpose and so it was removed from the list of agricultural machinery and implements by Act No 13 of 1963 but the tiller and harrow are modern ploughs which are attached to the tractor for the purpose of tilling the soil and they are not capable of being used for any pur pose other than agriculture. The use of the word "deemed to be" in item 3 against item No 8 of the Schedule appended to the Rajasthan Sales Tax Act connotes that the list of agricultural machinery and implements given is not exhaustive but merelv illustrative. We further find that entry No. 8 read with item 3 of the Schedule of the Rajas-than Sales Tax Act came for consideration before the single Bench of the Board of Revenue in "m/s. Abdul Shakoor Allabeli vs. State of Rajasthan" (1970 R. R. D. 165) and it was held that the list given in item 3 was exhaustive and the definition of agri-cultural implements and machinery could not be extended to items not covered by the list. This decision was later on overruled by Division Bench decision of the Board of Revenue in revision No. 380 of 1970 decided on 29-12-71. Following 1965 R. R. D. 3 we feel that intent of the Legislature was to exempt agricultural machinery and imple ments including part of such machinery and implement in order to promote agriculture operations on a vast scale in India. Such list of items to be included in agricultural machinery and implements has been mentioned in column 3 against entry No 8 in the Schedule appended to the Rajasthan Sales Tax Act but this list is merely illustrative and not exhaustive as held in 1967 S. T. C. (19) 459. The tiller and for that matter harrow are nothing but agricultural machinery and implements meant to till the soil They are merely versions of the ordinary ploughs and so we have no hesitation in hold-ing that they are included within the definition of agricultural machinery and imple-ments and are therefore, exempt from sales tax. What is treated in common parlance as agricultural machinery and implements has to be kept in view if the intent of Legisla-ture is to be fulfilled in the present matter. The tractor has been excluded from the list of agricultural machinery and implements for it was capable of being used both for agricultural and non-agricultural purposes but the tiller or harrow are incapable of being used for any purpose which is not clearly agricultural. We have further seen picture of tiller and harrow affixed to the tractor duly notified by their manufacturers. We find tiller and harrow being pulled by the tractor for the purpose of tilling the agricultural land. The tiller and harrow are used as modern ploughs for tilling the soil and therefore, they clearly fall within the definition of agricultural machinery and implements as enumerated in ferial No. 8 of the Schedule appended to the Rajasthan Sales Tax Act. Both are, therefore, exempt from sales tax. This revision is, therefore, accepted and the order of learned Additional Com missioner, Commercial Taxes, Jaipur dated 7-6-1971 is set aside and it is declared that tiller and harrow are nothing but modern ploughs which fall within the definition of agricultural machinery and implements which are exempt from the imposition of sales tax in Rajasthan. ;