Judgment

D. A. DESAI, JJ.

( 1 ) ON a direction given by the High Court of Punjab and Haryana at Chandigarh, the Sales Tax Tribunal, Punjab, Chandigarh (tribunal for short) referred under S. 22 (2) (b) of the Punjab General Sales Tax Act, 1948 (act for short) the following question of law to the High Court for its opinion :

"whether a belt pulley attachment was an agricultural implement within the meaning of Entry 34 of Schedule b of Punjab General Sales Tax Act, prior to the amendment made on 15/04/1971 ?"

( 2 ) THIS question came to be referred to the High Court at the instance of the assessee, the respondent herein. The respondent firm deals in tractors, motorcycles, cycles, spare-parts etc. The assessee filed its quarterly returns declaring a gross yearly turnover of Rs. 21,65,983. 91 p. Deductions were claimed in respect of sales of tax-free goods, sales made to registered dealers etc. Among the sales claimed in respect of tax-free goods, a commodity known as belt pulley attachment was included valued at Rs. 26,572. 82 p. It was admitted that the belt pulley attachment was sold along with tractor or separately by itself. It was contended by the assessee that the belt pulley attachment should be treated as an agricultural implement and therefore, it is exempted under Entry 34 of Schedule b to the Act from the levy of sales tax. The assessing authority came to the conclusion that the belt pulley attachment could not be treated as a composite part of the tractor nor can it be treated as an agricultural implement and it was not one of the tax-free goods as contemplated by Entry 34. He accordingly, rejected the claim for deduction and completed the assessment for the assessment year 1965-66. The assessee preferred an appeal before the Deputy Excise and Taxation Commissioner raising various contentions, one of them being that the assessing authority was in error in holding that belt pulley attachment was not an agricultural implement so as to be exempt from the payment of sales tax. The appellate authority held that the belt pulley attachment should be treated as an agricultural implement and allowed the appeal to that extent holding that the sales of belt pulley attachment amounting to Rs. 26,572. 82 p. was of tax-free goods under S. 5 (2) (a) (i) and that amount should be deducted from the gross turnover of the assessee. The Joint Excise and Taxation Commissioner exercising the powers of Commissioner initiated suo motu proceedings under S. 21 (1) of the Act and concluded that the appellate authority was in error in holding that the belt pulley attachment was an agricultural implement. He accordingly quashed the order of the appellate authority and restored the order of the assessing authority. The assessee carried the matter in revision to the Sales Tax Tribunal raising the same contention. The Sales Tax Tribunal by its order dated October 21, 1972 upheld the order of the Joint Excise and Taxation Commissioner and dismissed the revision petition. The assessee moved an application under S. 21 (1) of the Act requesting the Tribunal to state the case and refer the question of law as hereinbefore set out to the High Court. The Tribunal rejected the application. Thereupon the assessee moved the High Court as hereinabove mentioned. The High Court held that belt pulley attachment, as a matter of fact, increases the utility of a tractor for an agricultural operation and concluded that belt pulley attachment falls within the meaning of agricultural implement. The High Court accordingly answered the question in the affirmative that is against the revenue and in favour of the assessee, Hence this appeal by special leave.

( 3 ) THE narrow question is whether belt pulley attachment is an agricultural implement so as to be exempt from the levy of sales tax under the Act. It is indeed true as held by the High Court that the belt pulley when used in a tractor may increase the utility of the tractor for agricultural operations but that by itself d