Sales tax classification of deodourised kerosene turns on unchanged commodity identity despite processing and higher market value

Deodourised kerosene retains its identity as kerosene for sales tax classification under item 31(d) of the Andhra Pradesh General Sales Tax Act because the processing only removes odour and impurities and does not cause any organic or chemical change. A different commercial description, market value, or price does not alter the commodity's essential character. Accordingly, the entry for kerosene continues to apply to deodourised kerosene, and the assessments had to be revised on that basis.

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Issues: Whether deodourised kerosene remains kerosene for the purpose of item 31(d) of the First Schedule to the Andhra Pradesh General Sales Tax Act, or becomes a different product or article.

Analysis: The processing only removed odour and impurities from kerosene and did not bring about any organic or chemical change in the substance. The essential character of the commodity remained the same, and the fact that the processed product had a different commercial description or value did not alter its identity for sales tax classification. The reasoning applied to similarly processed goods in the cited precedent was treated as equally applicable, and the difference in price between the two forms of the commodity was held to be irrelevant.

Conclusion: Deodourised kerosene is kerosene within item 31(d) of the First Schedule to the Andhra Pradesh General Sales Tax Act.

Final Conclusion: The revision cases succeeded to the extent that the assessments had to be revised on the basis that deodourised kerosene fell within the entry for kerosene.

Ratio Decidendi: Where processing only removes impurities or odour without causing an organic or chemical change, the commodity retains its original identity for tax classification notwithstanding a different commercial description or price.

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