Trade Meaning Test Governs Tax Classification of Aluminium Foil as "Sheet" in concessional notification dispute.

Classification of aluminium foil under a concessional tax notification depended on its common parlance and trade meaning, because the word "sheet" was not treated as a technical term. In taxing entries, the decisive test is how the commodity is understood in the relevant trade and by persons dealing in it, rather than its nomenclature or mode of manufacture. As no evidence had been led on the popular meaning of "sheet" in the non-ferrous metal trade, remand was appropriate so the parties could prove whether aluminium foil was commonly regarded as a sheet or as a distinct commodity. The Tribunal's remand order was upheld.

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Issues: Whether aluminium foil could be treated as "sheets" under the notification granting reduced tax rate, and whether the Tribunal was justified in remanding the matter for evidence on the popular and trade meaning of the commodity.

Analysis: The expression "sheet" in the notification was not a technical term of art and had to be understood in its common parlance and trade sense. In classification under a taxing entry, the decisive consideration is how the commodity is known in the relevant trade and understood by persons dealing in it, not merely its nomenclature or manner of manufacture. As no evidence had been led on the popular meaning of "sheet" in the non-ferrous metal trade, the Tribunal directed remand so that both parties could establish whether aluminium foil was commonly regarded as a sheet or as a distinct commodity. The remand was held to be a proper course because the issue depended on factual proof.

Conclusion: The Tribunal's remand order was upheld and the revision failed. The assessee did not obtain relief.

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