PREM MOTORS AND TRACTORS Vs. STATE OF RAJASTHAN

JUDGEMENT

(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 : -

(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.