Commercial meaning of tariff entries: tamarind seed powder held covered by the exemption entry and not taxable.

The Bombay HC construed entry 12 of Schedule A to the Bombay Sales Tax Act, 1959, which covered "tamarind whole or powdered", in its ordinary commercial sense. It rejected the revenue's view that only the whole fruit or pulp was covered, holding that the entry extended to the parts of tamarind capable of being powdered, including seeds and skin. As tamarind seed powder fell within that commercial meaning, it was exempt from tax and the reference was answered in favour of the assessee.

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Issues: Whether tamarind seed powder sold under the relevant bill fell within entry 12 of Schedule A to the Bombay Sales Tax Act, 1959 and was therefore exempt from tax.

Analysis: The disputed entry covered "chillies, chilly powder; tamarind whole or powdered and turmeric, whole or powdered". The principal question was whether the word "tamarind" in the entry should be confined to the whole fruit or whether it also embraced the seeds and skin, so that tamarind seed powder would be covered. The construction urged for the revenue, namely that only the entire fruit including pulp could answer the entry, was rejected. On the departmental own stand, the pulp could not be powdered, whereas the parts capable of being powdered were the seeds or skin. In commercial understanding, the word used in a taxing entry is to be read in its ordinary commercial sense, and when similar commodities such as groundnut and cashew were treated as including their kernel, there was no reason to exclude tamarind seeds from the expression "tamarind" when powdered.

Conclusion: Tamarind seed powder was covered by entry 12 of Schedule A and was exempt from tax; the reference was answered in favour of the assessee.

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