Trade parlance test treats nalidar coal as coal for sales tax classification under the relevant schedule entry.

For sales tax classification, the common or trade meaning of a commodity prevails over a scientific or technical description. Nalidar coal, being used as fuel and containing coal or charcoal dust as the combustible element with earth and water serving only as an adhesive medium, was treated in commercial parlance as coal. It was therefore covered by entry No. 1 of Part III of Schedule II to the Act, and the assessee's classification claim was accepted on that substantive issue.

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Issues: Whether nalidar coal is coal and is covered by entry No. 1 of Part III of Schedule II to the Act.

Analysis: The decisive test applied was the popular or trade meaning of the expression rather than a scientific or technical meaning. Nalidar coal was found to be used as fuel and to contain coal or charcoal dust as the combustible ingredient, with earth and water serving only as an adhesive medium. On that footing, and applying the same approach adopted for charcoal, the commodity was treated as coal in common commercial understanding.

Conclusion: Nalidar coal was held to be coal and to fall within entry No. 1 of Part III of Schedule II to the Act.

Final Conclusion: The reference was answered in the affirmative, resulting in acceptance of the assessee's classification claim on the substantive issue.

Ratio Decidendi: For sales tax classification, the meaning of a commodity in common or trade parlance prevails over a scientific or technical description, and a fuel made substantially from coal or charcoal dust may be treated as coal for the relevant entry.

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