Retrospective tax amendment controls classification of pumping sets, bringing them within machinery and attracting higher tax.

A retrospective amendment to Entry No. 52 of the U.P. Sales Tax Act included water pumps within "machinery and spare parts of machinery," overriding an earlier Full Bench view that pumping sets were agricultural implements. Because the substituted entry operated as if it had always been in force, it governed the relevant assessment years. Pumping sets were therefore taxable at 6 per cent under the amended entry, not at 2 per cent as agricultural implements.

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Issues: Whether pumping sets were taxable as agricultural implements at 2 per cent or as machinery at 6 per cent in view of the retrospective amendment to Entry No. 52 of the First Schedule to the U.P. Sales Tax Act.

Analysis: A prior Full Bench had treated pumping sets as agricultural implements, but the State Legislature subsequently amended Entry No. 52 with retrospective effect by including water pumps within "machinery and spare parts of machinery". The amendment operated as though the substituted entry had always been in force, and therefore governed the assessment years in question. On that footing, pumping sets dealt in by the assessee fell within the amended entry attracting tax at 6 per cent.

Conclusion: The turnover of the pumping sets was liable to tax at 6 per cent and not at 2 per cent.

Ratio Decidendi: A retrospective statutory amendment that substitutes a tax entry must be applied as if the substituted entry had always formed part of the schedule, thereby determining tax liability for the relevant assessment years.

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