Popular and commercial meaning of goods controls sales tax classification; manganese was held distinct from manganese ore.

In sales tax law, the term "manganese" was construed in its popular and commercial sense, not scientifically, and was held not to include manganese ore because trade treated them as distinct commodities. On that basis, the levy at six pies in the rupee on purchase turnover could not be sustained. The Tribunal's direction for fresh assessment on the footing that manganese ore was taxable as general goods at the sale point was held to be within jurisdiction, since it did not predetermine the assessment and allowed the assessee a full opportunity in reassessment. The classification issue was decided for the assessee, and the remand was upheld.

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Issues: (i) Whether "manganese" in section 3(2-B), item (ii), of the Madras General Sales Tax Act, 1939 includes manganese ore for the purpose of levy at six pies in the rupee; (ii) Whether the Sales Tax Appellate Tribunal had jurisdiction to remand the assessment for fresh assessment treating manganese ore as general goods at the sale point.

Issue (i): Whether "manganese" in section 3(2-B), item (ii), of the Madras General Sales Tax Act, 1939 includes manganese ore for the purpose of levy at six pies in the rupee.

Analysis: The expression had to be construed in its popular and commercial sense, not in a scientific or technical sense. The statutory scheme itself showed a distinction between manganese and ore, and the commodity dealt with in trade was manganese ore as a separate commercial article. The common parlance test, applied in sales tax cases, required the Court to look at how dealers and consumers understand the goods, and on that basis manganese ore could not be treated as synonymous with manganese.

Conclusion: Manganese does not include manganese ore, and the levy at six pies in the rupee was not sustainable.

Issue (ii): Whether the Sales Tax Appellate Tribunal had jurisdiction to remand the assessment for fresh assessment treating manganese ore as general goods at the sale point.

Analysis: Once the higher-rate levy on purchase turnover was set aside, the Tribunal could direct a fresh assessment according to law on the footing that manganese ore was taxable as general goods at the sale point. The remand did not amount to a mandate to make a predetermined assessment, and the assessee was entitled to a full opportunity in the reassessment proceedings.

Conclusion: The remand was within jurisdiction and was rightly confirmed.

Final Conclusion: The classification issue was decided in favour of the assessee, while the order of remand was upheld, and both tax references were dismissed.

Ratio Decidendi: In sales tax legislation, goods are to be construed according to their popular and commercial meaning, and where the trade treats a metal and its ore as distinct commodities, one cannot be read as including the other unless the statute clearly so provides.

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