TMI Blog1972 (11) TMI 84X X X X Extracts X X X X X X X X Extracts X X X X ..... quire reconsideration and hence referred the case to a larger Bench. That is how this and the connected writ petition have now come up before us. Before we examine the main question, it is necessary to dispose of a preliminary point raised by the learned standing counsel. He urges that the petitioner has an alternative remedy by way of appeal under the Act, which he has already availed of and, as such, the writ petition is not maintainable. It is true that against the assessment for the year 1966-67 the petitioner has preferred an appeal, which is still pending on remand by the revising authority. In the meantime, the Sales Tax Officer has passed an assessment order for the assessment year 1967-68 creating a huge tax demand of Rs. 83,000, which is three times the amount which would be payable according to the petitioner. Assessment proceedings for the year 1968-69 have also been started and, according to the petitioner, the Sales Tax Officer intends to levy tax at 6 per cent. Then there are two decisions of this court, referred to above, where it has been held that centrifugal pumps and other pumping sets are not agricultural implements. So long as these decisions stand, no sales ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... animal power), including their (b) If manufactured in (b) Sale by parts and accessories, Uttar Pradesh. manu" " other than tyres and facturer. tubes. ----------------------------------------------------------------------------------------------- The entry No. 38 of the schedule reproduced above was modified with retrospective effect (from 1st April, 1960) by Notification No. ST6552-X-900(31)-1965 dated 1st September, 1965. The modified entry reads: "Agricultural implements other than those worked by human or animal power and tractor including their parts and accessories other than tyres and tubes." The contention of the petitioner is that the turnover of water pump is taxable at 2 per cent. according to this notification. The Sales Tax Officer, on the other hand, has relied upon Notification No. ST-7098/X1012-1965 dated 1st October, 1965. This notification has also been issued under section 3-A of the Act and reads: "In exercise of the powers under section 3-A of the U.P. Sales Tax Act, 1948 (U.P. Act No. 15 of 1948), the Governor of Uttar Pradesh is pleased to declare that, with effect from October 1, 1965, the turnover in respect of machinery and spare parts of machiner ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... recent times farmers are pressing into aid engine pumps in order to draw water from sub-soil, ponds, tanks and streams. It has been further stressed that even the Government regards pumping sets as an important aid to irrigation. In a book called "India 1961", published by the Publications Division, Ministry of Information and Broadcasting, Government of India, while discussing the development programmes, it has been stated: "The development programmes cover two types of schemes, viz., works schemes and supply schemes. The former include the construction and repair of wells, tanks, small dams, channels and tube-wells, the installation of water-lifting appliances such as pumps.........." In the same book, while discussing the total outlay on the implementation of minor irrigation schemes, it has been stated: "In addition, about 40,000 open wells are expected to be bored or deepened for augmenting their water supplies and about 50,000 pumping sets and 20,000 persian wheels distributed for lift irrigation." In a booklet called "Agricultural Production Manual", issued by the Indian Council of Agricultural Research Institute, New Delhi (1963 Edition), at page 31, the topic of min ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ping set certifying that the pumping set is being purchased for purposes of agricultural operations on the land of the purchaser. A sample copy of the form of certificate obtained from the purchaser is annexed as annexure I to the writ petition, which gives full particulars with regard to engine number and the name and the address of the purchaser so that the factum of sale can be easily verified. These averments have not been denied, although in the counter-affidavit it has been stated that the petitioner has sold pumping sets to certain persons who are not agriculturists. Three such names have been mentioned in the counter-affidavit. It is, however, clear that the bulk of the pumping sets have been sold by the petitioner to agriculturists. It is a matter of common knowledge, and it has not been disputed, that in recent times farmers are pressing into aid water pumps in order to irrigate their fields. But it is said that a pumping set has a variety of other uses, besides being used as a water-lifting appliance for irrigation. It can be used for pumping water for industrial or drinking purposes. It is argued that unless something is exclusively used for agricultural purposes, it ca ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ater is first stored in a storage tank and afterwards it is taken from the storage tank to the fields to be irrigated. In the opinion of the Bench, the former process was not agricultural process although the latter would be. On this reasoning, the case of a persian wheel was differentiated where the water is taken to the fields direct without being stored or collected. In the instant case, it has been averred on behalf of the petitioner that in the case of pumping sets sold by it no storage tank is required and water goes direct to the fields from the pump. Be that as it may, in our opinion, this distinction is not valid. So long as water is drawn for irrigation purposes, it does not matter that it is first stored in a storage tank or a reservoir. Water is stored obviously to avoid wastage. To us it appears that the question as to whether water is stored after it is pumped out or is taken direct to the field is not germane to the question as to whether the water-lifting appliance is an agricultural implement or not. In the case of M/s. Chandra Metal Co. v. Commissioner of Sales TaxSales Tax Reference No. 273 of 1963 decided on 23rd December, 1965., a Division Bench of this Court h ..... X X X X Extracts X X X X X X X X Extracts X X X X
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