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TMI Blog2002 (1) TMI 1271X X X X Extracts X X X X X X X X Extracts X X X X ..... appeared before the assessing officer and produced necessary documents with reference to the returns it filed earlier. The assessing officer noticed that it had sold water lifting hand pumps worth Rs. 52,52,724 to a registered dealer-M/s. Orissa Small Industries Corporation (Opposite party No. 6) on the strength of declaration in form XXXIV. Subsequently, on February 12, 1992 the petitioner filed a revised return disclosing the above sales to be taxable at the rate of 12 per cent but did not pay any tax thereon. The assessing officer treating the "water lifting hand pump" to be an item coming under the category of "machinery" as per entry No. 70 of the taxable list, levied tax at the rate of 16 per cent. This resulted in extra demand aga ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... idavit resisting the claim of the petitioner. According to them "hand pumps" have rightly been treated as machineries and taxed at 16 per cent as per entry 70 of the rate chart prescribed under the Act. The Orissa Small Industries Corporation (opposite party No. 6) had not issued any certificate to the Sales Tax Officer indicating payment of tax. A copy of the letter No. 7267 dated June 29, 1992 issued by the aforesaid Corporation to the petitioner, however, shows that a sum of Rs. 6,30,277.38 had been deposited with the sales tax authorities, Cuttack on account of collection of Orissa sales tax. The said deposit could not be accounted for due to want of evidence. Moreover, as the petitioner is liable to pay the tax since "machinery " is th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rious entries which were governing the field during the relevant period relating to "pump and pump sets". "Sl. No. Description of goods Rate of tax 38. Diesel and kerosene pump sets Eight per cent 41-A. Electric pump set Eight per cent 70. Machineries excluding sewing Sixteen per cent." machines and component parts and accessories thereof, (earth moving machineries) that is to say bulldozers, crawler tractors, shovels, wheeled loader scrappers, dumpers, tippers, motor graders. As already stated, the departmental authorities treated "hand pumps" as "machineries" coming within entry 70 and levied tax at 16 per cent on the disputed transactions. 5.. Learned counsel for the petitioner submitted that although it is open to the Legislatur ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . But where the commodities belong to the same class or category, there must be a rational basis for discriminating between one commodity and another for the purpose of imposing tax. It is commonly known that considerations of economic policy constitute a basis for levying different rates of sales tax. For instance, the object may be to encourage a certain trade or industry in the context of the State policy for economic growth, and a lower rate would be considered justified in the case of such a commodity. There may be several such considerations bearing directly on the choice of the rate of sales tax, and so long as there is good reason for making the distinction from other commodities no complaint can be made. What the actual rate should ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 6 per cent on their sale are hereby quashed. The matter is remitted to the Sales Tax Tribunal to pass appropriate order keeping in view the observations made in this judgment which may be done within a period of three months of its receipt. The Sales Tax Tribunal will examine if the Orissa Small Industries Corporation (opposite party No. 6) already collected sales tax from the ultimate purchasers and deposited the same in the Government treasury. If it comes to a finding in the affirmative, it is needless to mention that the petitioner cannot be demanded to pay tax once more. We may notice here that the learned counsel for the petitioner submitted that as there was no specific entry for hand pumps in the taxable list at the relevant time, t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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