Commercial identity test classifies hair-oil as a cosmetic and toilet article despite claimed medicinal properties.

Classification for sales tax purposes depends on the ordinary commercial meaning of the product and its intended use in common parlance, not on the formula of manufacture, medicinal ingredients, or odour. Hair-oil used for application to the hair, grooming, appearance and hair care is treated as a cosmetic and toilet article when its primary character is that of a toilet preparation. A product does not escape the specific schedule entry merely because it also claims medicinal properties. On that reasoning, Maha Bhringraj Hair-oil falls within the entry for perfumery, cosmetics and toilet articles rather than the residuary category.

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Issues: Whether Maha Bhringraj Hair-oil is a toilet article or cosmetic falling under Entry No. 11 of Part I of Schedule I to the C.P. and Berar Sales Tax Act, 1947, or a medicinal preparation taxable under the residuary provision.

Analysis: The relevant entry covered perfumery, cosmetics and all toilet articles including toilet soaps. The classification was held to depend on the ordinary and commercial meaning of the words, not on the formula of manufacture, the presence of medicinal ingredients, or the odour of the product. Hair-oil, being intended for application to the hair and for improving appearance, grooming, and hair care, answers the description of a cosmetic and toilet article in common parlance. The fact that it may also claim medicinal properties does not take it of the entry when its primary character is that of a hair-oil used as a toilet preparation.

Conclusion: Maha Bhringraj Hair-oil is a toilet article and a cosmetic falling under Entry No. 11 of Part I of Schedule I to the C.P. and Berar Sales Tax Act, 1947, and is liable to tax under section 5(1)(a) of that Act.

Final Conclusion: The reference was answered by holding the product taxable as a toilet article within the specific schedule entry, not as a medicinal preparation.

Ratio Decidendi: Classification of a product for sales tax purposes is governed by its ordinary commercial identity and intended use in common parlance; a hair-oil used for grooming and improving appearance is a toilet article or cosmetic even if it is prepared by an Ayurvedic formula or claims medicinal qualities.

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