Commercial meaning of local vegetable names governs tax classification; packed-sale containers are part of taxable turnover.

Tax classification of indigenous vegetables depended on their ordinary commercial and local meaning, not on an English dictionary definition alone. On the materials referred to, karunai and senai were treated as species of yam and remained taxable, while sembu and sirukizangu were not shown to be understood as yam and therefore continued to enjoy vegetable exemption. The estimated value of gunny bags used for packed sale was includible in taxable turnover, because a sale of packed goods includes both the contents and the container, and title to the bags passed to the buyer even though the seller did not separately deal in gunny bags.

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Issues: (i) Whether the turnover from sales of the specified vegetables was taxable as "yam" within the relevant sales tax notification; and (ii) Whether the estimated value of gunny bags in which the vegetables were sold was includible in the taxable turnover.

Issue (i): Whether the turnover from sales of the specified vegetables was taxable as "yam" within the relevant sales tax notification.

Analysis: The expression "yam" had to be understood in the commercial and local sense in which the indigenous vegetables were known, rather than by an English dictionary meaning alone. On the materials referred to, karunai and senai were treated as species of yam, but sembu and sirukizangu were not shown to be understood as yam. The exemption for vegetables therefore continued for those two items, while the turnover attributable to karunai and senai remained taxable.

Conclusion: The issue was answered partly in favour of the assessee. The turnover relating to sembu and sirukizangu was held not liable to tax as yam.

Issue (ii): Whether the estimated value of gunny bags in which the vegetables were sold was includible in the taxable turnover.

Analysis: A sale of packed goods involves a sale of both the contents and the container. The fact that the assessee did not trade separately in gunny bags did not matter, because the bags formed part of the sale price of the goods sold in packed condition and property in the bags passed to the buyer.

Conclusion: The issue was decided against the assessee. The value of the gunny bags was rightly included in the taxable turnover.

Final Conclusion: The assessment was modified by excluding the turnover attributable to sembu and sirukizangu, while sustaining tax on the gunny-bag component and on the remaining vegetable turnover, so the petition succeeded only in part.

Ratio Decidendi: Where indigenous goods are described by local names, their tax classification depends on their ordinary commercial understanding in that locality; and when goods are sold in packed form, the container may be treated as part of the taxable sale.

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