1. This revision has been filed against the order of the Sales Tax Appellate Tribunal dated 22nd April, 1974, in T.A. No. 329 of 1973. The assessee claimed exemption in respect of the sale of centrifugal pumps to the extent of Rs. 1,19,738.50 on the ground that they are used for agricultural purposes and are covered by the notification exempting agricultural implements. The assessing authority took the view that the sale by the assessee related to agricultural pumpsets and that the pumpset is not one of the items listed in the notification as eligible for the exemption. He, therefore, rejected the claim for the exemption. The Appellate Assistant Commissioner confirmed this view. On further appeal, the Tribunal also held that centrifugal pumps sold by the assessee were not agricultural implements and, therefore, not eligible for the exemption. The assessee challenges this decision of the Tribunal.
2. Under Section 17 of the Tamil Nadu General Sales Tax Act, 1959, the Governor of Tamil Nadu, with effect on and from 1st April, 1970, gave exemption 'in respect of the tax payable by any dealer under the said Act on the sales of agricultural implements (other than tractors, bulldozers and tillers)'. This notification was subsequently modified by another Notification No. 308 of 1970 dated 17th September, 1970. By this second notification, there was an amendment to the earlier notification as follows:
In the said notification (notification mentioned earlier), for the brackets and words '(other than tractors, bulldozers and tillers)', the brackets and words '(other than tractors, bulldozers, tillers, oil-engines, electric motors and pump-sets)' shall be substituted.
3. The result of this notification is that, while earlier all agricultural implements other than tractors, bulldozers and tillers were eligible for the exemption, under the amended notification, the exemption which was enjoyed by oil-engines, electric motors and pumpsets was also withdrawn. In other words, the Government, while it issued the notification, was obviously aware of the fact that pumpsets were agricultural implements and that, therefore, they were enjoying the exemption. The exemption was therefore sought to be withdrawn by the amendment to the earlier notification. The result was that on and from 17th September, 1970, pumpsets would go out of the category of exempted goods covered by the earlier notification.
4. The Tribunal, in its order, has referred to a decision of the Allahabad High Court in Delta Engineering Co. Private Limited v. Commissioner of Sales Tax  14 S.T.C. 515. That decision dealt with centrifugal water pumps used for pumping water from wells. A Bench of the Allahabad High Court held that the said water pumps were not agricultural implements within the meaning of a notification dated 7th June, 1948, issued by the U.P. Government. Subsequently, this decision has been overruled by a Full Bench of the same High Court in Engineering Traders v. State of Uttar Pradesh  31 S.T.C. 456. The Full Bench held that water pumpsets are connected intimately with agriculture and are commonly used and understood as agricultural implements and that, therefore, they fell under entry 38 of the schedule to the notification dated 1st April, 1960, issued by the U.P. Government. In order that an appliance may be an agricultural implement, the real test was not, it was held, that it should be exclusively used for agricultural purposes, but that it should be commonly so used and that it should be intimately and directly connected with agricultural operations. Applying the Full Bench decision  31 S.T.C. 456, the pumpsets would be agricultural implements, but the assessee will be eligible for the exemption only up to 17th September, 1970. After that date, the exemption having been withdrawn by a specific notification, the turnover would be taxable. The result is that the revision succeeds partially. There will be no order as to costs.