Sales tax classification of sandalwood oil turns on its commercial form, not its potential use as a perfume.

Sandalwood oil, as sold, is analysed for sales tax classification by reference to its commercial form and ordinary use. The article states that it is not a volatile oil yielded by oilseeds and therefore does not fall within item 6(a) of the Second Schedule. It is also not a perfume or scent within item 51 of the First Schedule because a perfume, in ordinary and technical usage, is a ready-for-use fragrant preparation, while sandalwood oil requires admixture before it can serve that function. The article accepts its classification as vegetable oil under item 20 of the First Schedule.

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Issues: Whether sandalwood oil, as sold by the assessee, fell within item 51 of the First Schedule as "scents and perfumes" or within item 6(a) of the Second Schedule as oil seeds yielding volatile oils, or whether it was classifiable as vegetable oil under item 20 of the First Schedule.

Analysis: Sandalwood oil was held not to be a volatile oil yielded by oil seeds, and therefore it could not fall under item 6(a) of the Second Schedule. It was also held not to be a perfume or scent within item 51 of the First Schedule, because a perfume, in ordinary as well as technical usage, denotes a ready-for-use fragrant preparation, whereas sandalwood oil as sold was only an essential oil requiring admixture with other ingredients before it could serve as a perfume. The Court further accepted that sandalwood oil fell within the meaning of vegetable oil under item 20 of the First Schedule.

Conclusion: Sandalwood oil, in the form sold, was not taxable under item 51 of the First Schedule or item 6(a) of the Second Schedule, and it was correctly classifiable under item 20 of the First Schedule. The revision was allowed in favour of the assessee.

Final Conclusion: The assessment treating sandalwood oil as a perfume was set aside, and the taxable classification was directed to be revised in accordance with the assessee's contention.

Ratio Decidendi: For sales tax classification, the article must be placed according to its commercial form and ordinary use as sold, and an essential oil requiring further processing before becoming a perfume cannot be treated as a perfume or scent.

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