Ordinary meaning of commodity entries governs sales tax classification, and express exemption notifications must be applied as written.

A taxing entry that incorporates a commodity named in another statute is construed in its ordinary commercial sense unless a narrower meaning is clearly indicated. On that approach, puffed rice and beaten rice fall within "rice" for the relevant sales tax entry and are therefore taxed at the specific rate, not under the residuary rate. The notification exempting paddy husk known as konda must also be given full effect according to its plain terms, so sales of that commodity are exempt from tax. The stated ratio is that statutory commodity descriptions and exemption notifications must be applied according to their ordinary and express meaning.

---

---

Issues: (i) whether puffed rice and beaten rice fall within the expression "rice" in section 14(i) of the Central Sales Tax Act, 1956 as incorporated in entry 1(i) of Part V of Schedule II to the M.P. General Sales Tax Act, 1958 and are taxable at 3 per cent rather than under the residuary entry at 10 per cent; (ii) whether paddy husk known as konda is exempt from tax under the notification issued under section 12 of the M.P. General Sales Tax Act, 1958.

Issue (i): whether puffed rice and beaten rice fall within the expression "rice" in section 14(i) of the Central Sales Tax Act, 1956 as incorporated in entry 1(i) of Part V of Schedule II to the M.P. General Sales Tax Act, 1958 and are taxable at 3 per cent rather than under the residuary entry at 10 per cent

Analysis: The entry in the State Act adopts the special category of cereals specified in section 14(i) of the Central Sales Tax Act, 1956. The expression "that is to say" makes the enumeration restrictive, so the question is whether puffed rice and beaten rice are included in the ordinary meaning of "rice". The accepted legal meaning of rice is wide enough to include rice in various forms, and this construction avoids the anomaly of taxing paddy at 2.5 per cent, rice at 3 per cent, cooked rice at 4 per cent, but puffed rice and beaten rice at 10 per cent. The normal meaning of the expression therefore governs the entry.

Conclusion: Yes. Puffed rice and beaten rice are covered by the expression "rice" and are taxable at 3 per cent, not at 10 per cent.

Issue (ii): whether paddy husk known as konda is exempt from tax under the notification issued under section 12 of the M.P. General Sales Tax Act, 1958

Analysis: The notification expressly exempts sales of paddy husk known as konda. The assessment taxing that commodity was contrary to the exemption granted by the notification.

Conclusion: Yes. Sales of paddy husk known as konda are exempt from tax.

Final Conclusion: The assessments could not stand insofar as they treated puffed rice and beaten rice as liable at the residuary rate and taxed exempt paddy husk. The petitions succeeded and the assessment orders were set aside, with liberty to make fresh assessments according to law.

Ratio Decidendi: Where a taxing entry adopts a commodity named in another statute, the commodity must be understood in its ordinary commercial sense unless the statute clearly indicates a narrower meaning, and an exemption notification must be given effect according to its plain terms.

---