Commodity classification for sales tax depends on the item as purchased, not its later use in manufacture.

Firewood specifically covered by a schedule entry retained that classification for concessional sales tax, even when part of the purchase was later used as raw material in hardboard manufacture. The Court treated the commodity's commercial identity at the time of purchase as decisive and held that subsequent use did not convert firewood into timber or justify a higher rate. A user-based approach was rejected where the entry itself described a specific commodity. The assessee therefore remained entitled to the concessional rate applicable to firewood, and the higher tax demand was unsustainable.

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Issues: Whether firewood purchased for use as raw material in the manufacture of hardboard ceased to be firewood for the purpose of concessional sales tax treatment under the First Schedule to the Kerala General Sales Tax Act, 1963.

Analysis: The commodity purchased was found to be firewood falling within the relevant First Schedule entry. The Court held that once a commodity is directly covered by a specific schedule entry and has an independent commercial identity, its later use for a purpose other than its ordinary or predominant use does not alter its classification. The fact that part of the quantity was actually used as fuel and the remainder as raw material for hardboard manufacture did not justify treating the same commodity as timber for a higher rate of tax. The broader user-based approach was held inapplicable where the entry itself described a specific commodity.

Conclusion: The assessee remained entitled to the concessional rate applicable to firewood, and the higher rate of tax was not sustainable.

Final Conclusion: Classification for sales tax depends on the commodity as purchased when it is specifically covered by the schedule entry, not on the assessee's subsequent use of that commodity.

Ratio Decidendi: Where a commodity is specifically and unambiguously covered by a schedule entry, its tax classification is determined by its commercial identity at the time of purchase and is not altered by its later use for a different purpose.

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