Sales tax classification of chuttas upheld where they were found similar to cigars and cheroots; double taxation challenge failed.

Chuttas were treated as indistinguishable from cigars and cheroots for sales tax classification because they underwent a substantially similar manufacturing process from tobacco leaves, including stripping, cutting and twisting into a finished product. The court held that classification did not turn on the class of consumers, and since chuttas were not shown to be materially different from goods covered by the taxing entry, the levy of additional tax was sustained. The argument that taxing chuttas after taxing raw tobacco amounted to impermissible double taxation was rejected.

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Issues: Whether chuttas are distinguishable from cigars and cheroots so as to escape additional tax under the sales tax schedule, and whether the levy amounts to impermissible double taxation.

Analysis: Chuttas and cigars or cheroots were found to undergo substantially the same manufacturing process, namely preparation from tobacco leaves by stripping, cutting and twisting into a finished product. The classification of the goods did not depend on the class of consumers. Since the product was not shown to be materially different from goods covered by the taxing entry, the contention that taxing chuttas after taxing raw tobacco amounted to double taxation was rejected.

Conclusion: The levy of additional tax on chuttas was upheld and the challenge failed, against the petitioner.

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