Commercial parlance test treats eucalyptus as timber, denying firewood exemption and leaving single-point tax applicable.

The commercial character of eucalyptus sales was determined by commercial parlance and the sale specifications, rather than by a broad firewood label. Where the wood was to be split, debarked, or otherwise used for industrial purposes, it was treated as timber and not as ordinary fuel, so the firewood exemption did not apply. The alternative first-sale position also failed because the necessary foundational facts, including forest-contractor status, were not established. On that basis, eucalyptus trees were taxable at the single-point rate of 5%.

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Issues: Whether the sale of eucalyptus trees was to be treated as firewood exempt under the notification, or as timber liable to single-point tax at 5% under the relevant entry.

Analysis: The decisive question was the true commercial character of the goods sold. The Court applied the settled commercial parlance approach and followed earlier rulings holding that eucalyptus is not firewood where the sale specifications show that the wood is to be split, debarked, or otherwise used for industrial purposes rather than as ordinary fuel. On that basis, the exemption notification for firewood did not apply. The additional contention based on the first-sale position was not available on the facts, as the petitioner was not shown to be a forest contractor and no foundational facts supported that plea.

Conclusion: The sale of eucalyptus trees was taxable at the single-point rate of 5% and was not exempt as firewood.

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