TaxTMI 
TaxTMI 
The question whether cashew nut is a 'dry fruit' is no longer open to debate in commercial, scientific or legal circles. While botanically the edible cashew kernel is the seed enclosed within the true fruit of the cashew plant, in trade, commerce, food laws and common parlance it has always been treated as a dry fruit. Consequently, wherever a statute, notification or exemption refers to 'dry fruits', the expression necessarily includes cashew nuts unless the legislation expressly provides otherwise.
A dictionary meaning of the expression 'dry fruit' also supports this conclusion. A dry fruit is generally understood as an edible fruit or seed having low moisture content, consumed in its dried or processed form, capable of long storage, and commonly traded as a dry fruit. The expression is not confined to dried fleshy fruits like raisins or dates. It equally embraces edible nuts such as almonds, walnuts, pistachios and cashew nuts, all of which are universally marketed, sold and consumed as dry fruits.
From the botanical standpoint, the cashew plant produces two distinct structures. The swollen fleshy portion popularly called the cashew apple is only an accessory or false fruit. The actual botanical fruit is the kidney-shaped shell attached beneath the cashew apple. Inside this true fruit lies the edible seed, namely the cashew kernel. Thus, the edible cashew kernel is the seed of the true fruit. Although botanically described as a seed, it is commercially recognized as a dry fruit because the classification of food commodities follows commercial understanding rather than strict botanical terminology.
The common parlance test has consistently been accepted by courts while interpreting taxing statutes. Goods are to be understood in the sense in which persons dealing with them understand them in the market. No consumer visits a shop asking whether cashew is botanically a seed or a nut. It is invariably purchased, sold, packed, exported, gifted and consumed as a dry fruit alongside almonds, pistachios, walnuts and raisins. Every dry fruit merchant stocks cashew kernels as part of the dry fruit category. This commercial identity cannot be ignored while construing statutory expressions.
The Google AI overview based on botanical literature also reinforces this position. It explains that the cashew kernel is the seed contained within the true fruit of the cashew plant, whereas the cashew apple is merely an accessory fruit. Therefore, although the edible portion is technically a seed, it originates from the fruit and is universally treated as a dry fruit in commerce.
Food laws also proceed on this understanding. Standards governing food products, export trade, packaging and commercial classification invariably place cashew kernels in the same category as other dry fruits and edible nuts. Customs tariff classifications likewise group cashew nuts with other edible nuts traded as dry fruits.
Therefore, the expression 'dry fruit' may safely be understood to mean:
'Dry fruit' means any edible fruit, nut or seed which is consumed in a dried or low-moisture state, possesses storage stability, and is commercially recognized and traded as a dry fruit. The term includes edible kernels such as almonds, walnuts, pistachios and cashew nuts, irrespective of their strict botanical classification.
Applying this definition, cashew nut clearly satisfies every essential characteristic of a dry fruit. It is the edible kernel obtained from the true fruit of the cashew plant; it is dried and processed before consumption; it has low moisture content and long shelf life; and above all, it is universally recognized in trade and common parlance as a dry fruit.
Accordingly, wherever the expression 'dry fruits' appears in a statute, notification, exemption or commercial document, cashew nut must be regarded as included unless expressly excluded. Any interpretation excluding cashew nut from the ambit of 'dry fruits' would be contrary to botanical facts, commercial practice, common parlance and the settled principles of interpretation applicable to fiscal statutes.