TMI Blog1970 (11) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... the Act for determination of the question as to what was the rate of tax payable on the sale of the said tractor. Along with the application, the assessee submitted a copy of the bill and later on the assessee produced before the Deputy Commissioner of Sales Tax, who heard the said application, additional evidence in the shape of certain booklets and pamphlets describing the essential characteristics of Massey-Ferguson tractors. The contention of the assessee before the Deputy Commissioner of Sales Tax was that the tractors in question were manufactured with the object, design and mechanism which made them more suitable for being used for agricultural purposes. The assessee, therefore, contended that the tractor in question was "agricultural machinery" covered by entry 12 of Schedule C and was liable to be taxed at the rate mentioned in the said entry. The Deputy Commissioner of Sales Tax by his order dated 30th November, 1965, held that the tractor in question was not "agricultural machinery" within the meaning of the said entry but was covered by the residuary entry 22 of Schedule E and was liable to be taxed accordingly. In coming to this conclusion, the Deputy Commissioner of S ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... could work in a better way for agricultural operations it would not be a sufficient factor to turn the tractor into "agricultural machinery". The Tribunal accordingly found that it could not be said that the principal and primary use of the tractor in question was agricultural and hence the tractor in question would not fall within entry 12 of Schedule C. In arriving at its decision, the Tribunal relied principally upon the decision of the Bombay High Court in Pashabhai Patel and Co. (P.) Ltd. v. Collector of Sales Tax, Maharashtra State[1964] 15 S.T.C. 32. The assessee being dissatisfied with the order of the Tribunal made an application to the Tribunal requiring it to refer to this court the question of law arising out of its order, namely, whether the tractor in question was an agricultural machinery within the meaning of entry 12 of Schedule C to the Act and the Tribunal has accordingly referred the following question to this court: "Whether on the facts and in the circumstances of the case the sale of Massey-Ferguson tractor sold by bill No. TF/140 dated 24th March, 1965, is an agricultural machinery covered by entry 12 of Schedule C to the Bombay Sales Tax Act, 1959, and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ana, 1958 Edition, Vol. XXVI, page 744). It would thus be seen that a tractor is used on farms, on highways, on warfields, in factories and such other and numerous places. With the modern technological advancement, however, tractors of different varieties have appeared in the market and each variety of tractors is manufactured to achieve a particular object and render more useful service in a particular field. These different varieties of tractors have their own distinct features and special designs which make them adaptable for use for the designated purpose. Whenever, therefore, a question arises whether a tractor in a given case is an agricultural machinery or an industrial machinery or machinery of any other type, the question must necessarily be answered by reference to its design, mechanism, distinct features and special adaptability, if any, to any particular use out of the diversity of uses to which a tractor is capable of being put. It would indeed be difficult, if not impossible, to answer the question in the abstract without reference to the intrinsic character and design of the tractor in question. If a question arises in a given case, as here, as to whether a particu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in India over a period of ten years and a vast majority of the said tractors are being used in agriculture in India. It is further pointed out in the certificate that the company has obtained a licence from the Government of India to manufacture farm machinery including the tractors of the type with which we are concerned, to meet the growing demands from the Indian agriculturists during the third and subsequent five year plans and that for the purposes of customs duty and excise duty, the tractors are exempted as agricultural tractors on production of the "end-use" certificate by farmers. The pamphlet entitled "TAFE ... and Indian Farming" published by the manufacturers claims that the company has accepted the challenge of providing India's farmers with the efficient and economic farm tractors and implements essential in the struggle to. raise India's farm productivity and that since 1949, 16,000 Ferguson system tractors have been sold to the Indian farmers. Another pamphlet entitled "Facts about Farming with Ferguson" contains the following information: "Essentially, the Ferguson system is an entirely new way of farming, revolutionary in design and operation. Tractor and impl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chanics of its attachment to the tractor, weight from the drawn tool is partially transmitted to the rear wheels, producing more traction, thus enabling the lighter tractor to do more work. The 3-point hitch is coupled with the hydraulic lift system, which may also be automatically controlled through the draft of the implement (1) to control depth, (2) to regulate draft to fit the tractor power and (3) to add weight to the tractor by lifting on the implement." Besides drawing our attention to the special features and design of the tractor in question, as described in the above-mentioned booklets and pamphlets, counsel for the assessee drew our attention to an order dated 30th March, 1967, issued by the Ministry of Industries Development and Company Affairs, Department of Industrial Development and published in the Gazette of India, Extraordinary, part II, section 3, sub-section (ii), dated 30th March, 1967. The order is made in exercise of the powers conferred by section 3 of the Essential Commodities Act, 1955, by the Central Government principally with a view to controlling and fixing the sale price of tractors. "Tractor" has been defined in the said order to mean "an agricultu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other tractors or not, appears to our mind to be an irrelevant question in that, should other tractors also have such distinctive features, such other tractors may as well fall within the description of "agricultural machinery" within the meaning of entry 12 of Schedule C. The test propounded by the counsel is not the correct test for determining the question put before us and in any event there is no material on the basis of which the test could be applied in the facts and circumstances of this case. Counsel for the revenue also invited our attention to the judgment of the Maharashtra High Court in the case of Pashabhai Patel and Co. (P.) Ltd. v. Collector of Sales Tax, Maharashtra State[1964] 15 S.T.C. 32. and to the decision of the Madhya Pradesh High Court in the case of M/s. Agrawal Bros. v. Commissioner of Sales Tax, Madhya Pradesh[1965] 16 S.T.C. 860., and contended that the said two cases furnish the correct test for determining whether the tractor in question is an "agricultural machinery" within the meaning of the relevant entry of the schedule. Counsel for the assessee, on the other hand, drew our attention to the decision of the Mysore High Court in State of Mysore v ..... X X X X Extracts X X X X X X X X Extracts X X X X
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