Tractors as diesel-powered machinery, not agricultural implements, remained taxable under the specific sales tax entry.

Tractors are treated as machinery worked by diesel or petrol and not as agricultural machinery or implements merely because they are used on agricultural land with ploughs, harrows or similar implements. The decisive character is that a tractor is a self-propelled machine capable of use in multiple settings, so its agricultural use alone does not exclude it from the specific sales tax entry. On the facts noted, the claim that the tractors were only farm tractors was not established, and the goods could not be shifted to the residuary entry. The sales were therefore assessed under entry No. 44.

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Issues: Whether tractors, tractor parts and implements fell within entry No. 44 of Part II of Schedule II to the Madhya Pradesh General Sales Tax Act, 1958 as machinery worked by diesel or petrol, or were excluded as agricultural machinery and implements.

Analysis: The decisive question was the true character of tractors. A tractor is a machine worked by diesel or petrol and is a self-propelled vehicle capable of hauling loads and operating in multiple settings, including highways, factories, air-fields and agricultural land. Its use on agricultural land, even with implements such as ploughs or harrows, does not by itself make it agricultural machinery or an agricultural implement. The finding that the tractors sold were farm tractors usable only for agriculture was not established. On those facts, the goods were not shown to fall outside entry No. 44 and could not be treated as goods falling under the residuary entry.

Conclusion: Tractors were not agricultural machinery or implements, and the sales were rightly assessed under entry No. 44 at 7%.

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