Contractual substance overrides product label in sales tax classification of goods supplied under detailed specifications.

Contractual specifications can override a plain label when determining sales tax treatment of goods. Although the goods were described as approved firewood, the detailed terms governing the supply showed minute requirements that indicated the parties were not dealing with the goods merely as firewood. A precedent based on classification by ordinary name was held inapplicable because the decisive factor was the substance of the agreement and the character of the supply under it. On that basis, the supply was not exempt as firewood and the revision failed.

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Issues: Whether the goods supplied under the agreement were to be treated as exempt firewood, or whether the detailed contractual specifications showed that the supply was not of firewood for sales tax purposes.

Analysis: The description of the goods as approved firewood was not conclusive. The specifications agreed between the parties showed minute requirements for the supply, indicating that the parties did not intend the goods to be dealt with merely as firewood. The precedent relied upon, dealing with articles classified by their generally known name, was held inapplicable because the present case turned on the contractual specifications and the character of the supply under the agreement.

Conclusion: The supply was not exempt as firewood, and the revision failed.

Ratio Decidendi: Where the contractual specifications show that the goods supplied are not intended to be sold merely by their ordinary description, their tax character must be determined by the substance of the agreement and not by the label used in the contract.

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