Popular and commercial meaning of taxing entries excludes certified seeds from cereals, confirming multi-point tax treatment.

Certified seeds of cereals are not included within the term "cereals" in the Karnataka Sales Tax Act, because taxing entries must be construed in their popular and commercial sense, not in a botanical or technical sense. Seeds processed, treated, packed and sold for sowing have a distinct commercial identity from edible grain intended for human consumption, so they fall outside the cereal entries and are subject to multi-point tax under the general charging provision. Exemptions under section 8A cannot control the meaning of the charging entries. The Commissioner's circular was valid as a clarification of the correct statutory position.

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Issues: Whether certified seeds of cereals are included within the term "cereals" in the Second and Fourth Schedules to the Karnataka Sales Tax Act, 1957, and whether such seeds are liable to single-point levy as cereals or to multi-point tax as a separate commercial commodity; and whether the clarificatory circular issued by the Commissioner was invalid.

Analysis: The expression "cereals" in the relevant Schedules had to be construed in its popular and commercial sense, not in a botanical or technical sense. The statutory scheme, read with section 14 of the Central Sales Tax Act, 1956 and the State amendments made to give effect to section 15 of that Act, showed that the declared cereals were those edible grains ordinarily understood as foodgrains. Certified seeds were treated and marketed as a distinct commodity: they were processed, treated, packed, labelled and sold for sowing, not for human consumption. Their commercial identity was different from grain sold as food. The earlier and later notifications relied on by the assessees did not alter that interpretation, as exemptions granted under section 8A of the Act could not control the meaning of the charging entries. The circular merely clarified the departmental understanding of the statutory entries and was consistent with the correct legal position.

Conclusion: Certified seeds are not "cereals" for the purpose of the Act and are liable to multi-point tax under section 5(1), not single-point levy under the cereal entries. The circular was valid as a clarification, and the assessees' challenge failed.

Ratio Decidendi: In taxing entries, words must be construed in their popular and commercial sense; processed seeds meant for sowing, having a distinct commercial identity from edible grain, do not fall within the term "cereals" unless the statute clearly says so.

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