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2015 (4) TMI 491 - MADHYA PRADESH HIGH COURT

2015 (4) TMI 491 - MADHYA PRADESH HIGH COURT - 2016 (337) E.L.T. 342 (M. P.) - Disallowance of for tax exempted sales of agricultural implements - "Tractor trailers for use in agricultural purpose" - Whether under the facts and in circumstances of the case, the Appellate Board is right in law and had valid material to hold that Tractor trailers, sold by the appellant were not 'for use in agricultural purpose' and not entitled for exemption from payment of tax under Entry No. 1 of Schedule I of t .....

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e board erred in holding that tax exemption could be granted only in respect of the trailers sold directly to the agriculturists and where the trailers were sold through distributor/dealer, the exemption from tax was available to such dealer/distributor when he would have sold such trailers to the agriculturists. As such, the impugned order is not sustainable in the eyes of law. - Decided in favour of assessee. - Vat A. No. 27/2012 - Dated:- 25-3-2015 - Rajendra Menon And C. V. Sirpurkar,JJ. For .....

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eputy Commissioner, Commercial Tax, Jabalpur in Appeal No. 57/07/State. 2. The facts giving rise to this VAT Tax Appeal may briefly be stated thus: Appellant Prakash Metal Craft Industries is a proprietorship concern engaged in the manufacturing and sale of agricultural implements. The Assessing Authority, Assistant Commissioner of Commercial Tax, assessed tax of ₹ 3,29,705/- @ 4.6% on taxable turnover of ₹ 71,67,500/- upon gross turnover of ₹ 3,63,32,501/- under Entry 73 of Pa .....

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der made in this regard by the assessing authority dated 30.12.06 is annexure A-2. The aforesaid order was upheld by the Appellate Deputy Commissioner of Commercial Tax, Jabalpur vide order dated 19.02.08 (Annexure A-3). The order dated 19.02.08 was affirmed by the Madhya Pradesh Commercial Tax Appellate Board vide impugned order dated 17.08.12 (Annexure A-1), holding that unless trailer had been directly purchased by agriculturist, it could not be held that the trailer had been used for agricul .....

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No. 1 of Schedule I of the Act, read with Entry No. 55 of notification No. A-3-6-2000/ST-V(52), dated 17-07-2000, being 'Tractor trailers for use in agricultural purpose?'' 4. In support of this claim, learned counsel for the appellant has relied upon Entry No. I in Schedule I under section 15 of the Madhya Pradesh Commercial Tax Act and notification No. A-3-46-2000/ST-V(52), dated 17-07-2000. The Schedule I effective from 15.03.00 enlists the goods exempted from commercial tax under .....

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earned Deputy Advocate General for Revenue, on the other hand, has supported the impugned order. 6. In view of rival contentions, the Court has to mainly consider whether sale of trailers not directly to the agriculturists but to the dealers/distributors, would qualify for exemption from tax under Entry No. 55 of the notification No. A-3-46-2000/ST-V(52), dated 17-07-2000 made pursuant to Entry No. I of Schedule I of the Madhya Pradesh Commercial Tax Act, 1994? Entry No. I of the Schedule I appe .....

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07-2000 notified 56 numbers of implements as "agricultural implements". for the purpose of the said entry. The Implement No. 55 reads as follows:- "55 Tractor trailers for use in agricultural purpose." (emphasis supplied) 8. In the opinion of this Court, the fate of this VAT Tax Appeal depends upon the interpretation of the expression "for use" occurring in Entry No. 55 of the notification dated 17.07.2000. 9. The Apex Court, in the case of State of Haryana versus D .....

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example, "goods actually used" or "goods used" The relevant para 10 of the judgment is herein below reproduced: 10. We are unable to accept the submission of Mr. Bana that, in order to get the exemption it must be shown that the goods in question, namely, the cement supplied by the assessee in this case was actually used in the generation or distribution of electrical energy. It must be noted that the important words used in the relevant provisions are "goods for use by .....

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