Commodity classification under tax law: scented chewing tobacco treated as taxable zarda, not exempt chewing tobacco.

Commodity classification for tax purposes depended on whether baba zarda zafrani pati scented chewing tobacco answered the statutory description of chewing tobacco or fell within taxable zarda. Applying common parlance, mode of consumption, and the legislative distinction between tobacco products, the court treated the manufacturer's description and the refined, processed character of the product as insufficient to bring it within the tax-free chewing tobacco entry. The commodity was held to be zarda, not chewing tobacco, so the reference was answered against the dealer and in favour of the department.

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Issues: Whether baba zarda zafrani pati scented chewing tobacco was to be treated as chewing tobacco and exempt from tax, or as zarda and therefore taxable.

Analysis: The commodity was examined in the light of the statutory distinction drawn between chewing tobacco and zarda. The reasoning turned on common parlance and the mode of consumption, as well as the legislative treatment of different tobacco products. The description used by the manufacturer and the processed, refined character of the commodity were treated as insufficient to make it ordinary chewing tobacco when the entry itself kept zarda taxable while carving out chewing tobacco as tax-free.

Conclusion: The commodity was held to be zarda and not chewing tobacco. The reference was answered against the dealer and in favour of the department.

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