Trade and popular meaning governs paper classification for composite hessian rolls used in wrapping and packing goods.

Hessian paper rolls used for wrapping and packing matches were treated as paper for classification under entry 117 of the Tamil Nadu General Sales Tax Act, because the entry was construed broadly and the goods retained their identity in trade and popular meaning despite the presence of bitumen and hessian. The composite composition did not take the product outside the paper entry merely because additional materials were present. The Tribunal's contrary view was rejected, and the levy at the paper entry rate was sustained.

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Issues: Whether hessian paper rolls manufactured and sold by the assessee fall within entry 117 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959, as paper liable to tax at the first sale point.

Analysis: Entry 117 was construed as using comprehensive language covering paper of all sorts, including packing and wrapping paper and other paper varieties not specifically enumerated. The commodity, though made with paper, bitumen and hessian, was admittedly used for wrapping and packing matches. Applying the trade and popular meaning of the entry, the Court held that the added presence of bitumen and hessian did not destroy the character of the goods as paper. The Tribunal erred in treating the product as outside the entry merely because of its composite composition.

Conclusion: The hessian paper rolls were held to fall within entry 117, and the levy at 8 per cent was upheld in favour of Revenue.

Final Conclusion: The assessee's commodity retained its identity as paper for purposes of the sales tax entry, so the revision succeeded and the Tribunal's contrary view was set aside to that extent.

Ratio Decidendi: For fiscal classification, a commodity falling within a broadly worded paper entry is to be judged by its trade and popular meaning, and a composite product does not escape the entry merely because it contains additional materials if it continues to retain the identity of paper.

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