Commercial parlance and predominant use govern tax classification of poultry products, with specific entry prevailing over a general one.

Classification under a sales tax entry turns on common or commercial parlance and the predominant use of the goods, not merely their composition. T.M. poultry formula was primarily used as a medicinal preparation to treat and prevent bacterial disease in poultry, so its nutritional effect was only ancillary; it was classified as drugs and medicines under the relevant schedule entry. T.M. egg formula, T.M. forte and T.M. 5 were marketed and used as nutritional supplements for poultry to improve egg production, growth and balanced nutrition, so they were treated as poultry-feed under the specific entry. The specific entry prevailed over the general medicinal entry where the products fit that description.

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Issues: (i) Whether T.M. poultry formula is to be classified as poultry-feed under entry 25 of Schedule I to the Gujarat Sales Tax Act, 1969 or as drugs and medicines under entry 26(1) of Schedule II, Part A; (ii) Whether T.M. egg formula, T.M. forte and T.M. 5 are poultry-feed under entry 25 of Schedule I or fall outside that entry.

Issue (i): Whether T.M. poultry formula is to be classified as poultry-feed under entry 25 of Schedule I to the Gujarat Sales Tax Act, 1969 or as drugs and medicines under entry 26(1) of Schedule II, Part A.

Analysis: The classification had to be determined on the basis of the common or commercial parlance meaning of the goods and their predominant use, and not merely by reference to their composition. Although the product contained terramycin, its recommended and actual use was primarily medication for treating and preventing bacterial diseases in poultry. Its nutritional effect was only indirect and ancillary. In that setting, the special entry for poultry-feed could not displace the product's true character as a medicinal preparation.

Conclusion: T.M. poultry formula is not poultry-feed and is covered by entry 26(1) of Schedule II, Part A as drugs and medicines, in favour of the Revenue.

Issue (ii): Whether T.M. egg formula, T.M. forte and T.M. 5 are poultry-feed under entry 25 of Schedule I or fall outside that entry.

Analysis: Poultry-feed was held to include not only conventional feed but also scientifically prepared additives such as vitamins, minerals and antibiotics when they are formulated and used to remove nutritional deficiency and improve production. These products were marketed and used as nutritional supplements for poultry, with their main object being better egg production, growth and balanced nutrition. On that basis, they fell within the common parlance meaning of poultry-feed. The specific entry for poultry-feed therefore applied rather than the general entry for drugs and medicines.

Conclusion: T.M. egg formula, T.M. forte and T.M. 5 are poultry-feed and are covered by entry 25 of Schedule I, in favour of the assessee.

Final Conclusion: The reference was answered by classifying T.M. poultry formula as a taxable medicinal product and the other three products as exempt poultry-feed, resulting in a mixed outcome.

Ratio Decidendi: Classification under a sales tax entry must be determined by common or commercial parlance and predominant use, and where an article can properly be placed in a specific entry, that specific entry prevails over a general entry even if the article may also possess medicinal attributes.

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