Agricultural exemption for centrifugal pumps ended once the amended notification expressly excluded pumpsets.

Centrifugal pumps used in agricultural operations were treated as agricultural implements under the Tamil Nadu General Sales Tax exemption notification, because the original exclusion clause did not remove pumpsets from the exempted class. The amending Notification No. 308 of 1970 then expressly withdrew exemption for oil-engines, electric motors and pumpsets with effect from 17.09.1970, showing that pumpsets had been covered earlier but were excluded from that date onward. As a result, the pumps were exempt only up to 17.09.1970, and turnover after that date became taxable.

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Issues: Whether centrifugal pumps used in agricultural operations were agricultural implements entitled to exemption under the notification issued under section 17 of the Tamil Nadu General Sales Tax Act, 1959, and whether the exemption continued after the amending notification of 17.09.1970.

Analysis: The exemption notification initially covered agricultural implements other than certain specified items. The amendment by Notification No. 308 of 1970 substituted the exclusion clause so as to withdraw exemption in respect of oil-engines, electric motors and pumpsets. This showed that pumpsets were treated as within the class of agricultural implements for the purposes of the earlier notification. The amendment, however, expressly removed pumpsets from the exempted category with effect from 17.09.1970. On that footing, the pumpsets qualified for exemption only up to the date of withdrawal, and thereafter the turnover became taxable.

Conclusion: The centrifugal pumps were covered by the exemption only until 17.09.1970, and the assessee was not entitled to exemption thereafter.

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