Sales tax classification of Tinopal: treated as a chemical under the notified entry for taxation.

Tinopal was treated as a chemical for sales tax classification because taxing entries are understood in the sense in which the commodity is recognised in commercial circles and by consumers. Although it was also usable as a washing material, its manufacturer described it as an optical whitening agent and the record showed use for its chemical properties. On that basis, it fell within the notification covering "chemicals of all kinds" under section 3-A of the U.P. Sales Tax Act and was taxable at the notified single-point rate rather than as an unspecified article at the general rate.

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Issues: Whether Tinopal fell within the entry "chemicals of all kinds" in the notification issued under section 3-A of the U.P. Sales Tax Act and was therefore taxable at one anna per rupee, or whether it was an unspecified article taxable at three pies per rupee.

Analysis: Under section 3 of the U.P. Sales Tax Act, goods were taxable at the general rate, while section 3-A empowered the State Government to notify specified goods for tax at a single point and at a specified rate. Notification No. ST-905/X dated 31st March, 1956 covered "chemicals of all kinds" at one anna per rupee. Tinopal was described by its manufacturer as an optical whitening agent and the material on record showed that it was used for its chemical properties. In taxing statutes, the relevant meaning of a commodity is the sense in which it is understood in commercial circles and by the consumer public. On that test, Tinopal was regarded as a chemical and the circumstance that it could also be used as a washing material did not take it out of that category.

Conclusion: Tinopal was covered by the entry "chemicals of all kinds" and was liable to tax at one anna per rupee for the assessment years 1958-59 and 1959-60.

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