AGRAWAL BROTHERS Vs. COMMISSIONER OF SALES TAX

JUDGEMENT

(1.) IN this reference under Section 44 of the Madhya Pradesh General Sales Tax Act 1958, (hereinafter called the Act), by the Sales Tax Tribunal at the instance of the assessee M/s Agrawal Brothers, Satna, the question which we have been asked to answer is-

(2.) THE material facts are that in assessment proceedings for the period from 1st april 1959 to 31st March 1960 the Sales Tax Officer, Satna, rejected the assessee's contention that tractors sold by them were "agricultural machinery" and, therefore, the sales of tractors effected by them were not liable to tax at the rate of seven per cent under entry No. 44 of Part II of Schedule II to the Act; and that those transactions could be assessed to tax at the rate of four per cent under the residuary entry in Part VI of that Schedule. The decision of the Sales Tax officer was upheld in first appeal by the Appellate Assistant Commissioner of Sales tax as well as by the Sales Tax Tribunal in second appeal.

(3.) ENTRY No. 44 of Part II of Schedule II to the Act is as follows-"all machineries or machines worked by electricity, diesel or petrol and spare parts and accessories thereof, excepting agricultural machinery and implements and Parts thereof. " The sale transactions of articles falling under that entry are liable to sales-tax at the rate of seven per cent. Entry No. 1 of Part VI of Schedule II relates to the taxability of "all other goods not included in Schedule I or any other part of this Schedule (Schedule II)". During the material period the sale transactions of articles falling under this entry were subject to tax at the rate of four per cent. While holding that tractors not being "agricultural machinery" were not excluded from entry No. 44, the Sales Tax tribunal observed