Commercial meaning of coal governs fiscal classification, so charcoal falls within the specific tax entry.

Charcoal was treated as falling within the commercial and popular meaning of "coal" for fiscal classification under the Madhya Pradesh General Sales Tax Act, 1958. Because tax entries are construed in the sense in which goods are understood in trade, and charcoal was not separately named in the Schedule, it was placed in the specific entry for coal rather than the residuary entry. The result was tax at 2 per cent under Part III of Schedule II instead of the higher residuary rate. The governing principle is that commercial understanding prevails in construing fiscal entries, and a commodity within that understanding is not relegated to a residuary category.

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Issues: Whether charcoal is covered by the entry for coal in Part III of Schedule II to the Madhya Pradesh General Sales Tax Act, 1958, so as to attract tax at 2 per cent., or falls under the residuary entry in Part VI of Schedule II and is taxable at 4 per cent.

Analysis: The word "coal" in a fiscal statute is to be understood in its popular and commercial sense. Although in its older English usage the term could extend to charcoal, its ordinary present meaning is narrower; however, in Indian commercial usage coal includes charcoal. Since tax entries must be construed according to the sense in which goods are understood in trade, and there was no separate mention of charcoal in the Schedule, charcoal was held to be comprehended within the expression "coal".

Conclusion: Charcoal is covered by Entry No. 1 of Part III of Schedule II to the Madhya Pradesh General Sales Tax Act, 1958, and is taxable at 2 per cent. The reference was answered in favour of the assessee.

Ratio Decidendi: In construing fiscal entries, the commercial and popular meaning of the goods description governs, and a commodity falling within that commercial understanding is not to be placed in a residuary entry.

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