Goods classification under taxing entries is a question of law where the commodity's legal status is disputed.

Classification of flat bars under the relevant iron and steel entry under the Central Sales Tax Act raised a question of law because the legal character of the commodity was in dispute. The Court noted that it was not deciding the merits of the classification, but only whether the proposed question from the Board of Revenue's order justified a reference. Applying the settled principle that classification of goods under a taxing entry involves a legal question, the Court found no direct authority conclusively settling the position of the goods and directed the Board to state the case and refer the question to the High Court.

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Issues: Whether the question whether flat bars sold by the assessee fall within the category of iron and steel under the relevant notification and section 14 of the Central Sales Tax Act, 1956 was a question of law warranting a reference to the High Court.

Analysis: The Court noted that the controversy was not being decided on merits at that stage. The only enquiry was whether the proposed question arising from the Board of Revenue's order was a question of law. Relying on the settled principle that classification of goods under a taxing entry raises a question of law, the Court held that there was no authority directly concluding the position of the goods in question, and the issue therefore required examination by way of reference.

Conclusion: The question was held to be a question of law and the Board of Revenue was directed to state the case and refer it to the High Court.

Final Conclusion: The application succeeded and the matter was sent for reference on the formulated legal question.

Ratio Decidendi: Whether goods fall within a particular taxing entry is a question of law when the legal classification of the commodity is in dispute.

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