Common parlance test governs sales tax classification where claimed Ayurvedic tablets lacked proof of medicinal character.

For sales tax classification, the true character of a product is determined by its common parlance identity, constituents, actual use and market acceptance, not by the manufacturer's label or licences under other laws. Applying that test, the tribunal found no reliable evidence of authoritative Ayurvedic formulation, product literature, medical recommendation, trade acceptance as medicine or clinical trials showing curative value. The claim that the goods were sugar was also rejected. On that basis, "Swad" tablets were treated as a confectionery article rather than an ayurvedic medicine, and tax at the residuary rate was upheld.

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Issues: Whether the product "Swad" tablets was an ayurvedic medicine or a confectionery article for the purpose of sales tax classification and whether it was liable to tax at the residuary rate instead of the concessional rate applicable to medicines.

Analysis: The product had to be judged by its true character in common parlance, with reference to its constituents, use, and market acceptance, and not merely by the description used by the manufacturer or by licences obtained under other enactments. The evidence showed that the tablets were not manufactured strictly in accordance with the authoritative Ayurvedic formula, but were prepared by evolving a formula of the manufacturer's own after taking ingredients from Ayurvedic texts with modifications. The Court also found that there was no reliable evidence of product literature, medical recommendation, trade acceptance as medicine, or clinical trials to establish curative value. The claim that the product was sugar was rejected, and the statutory and tariff materials relied upon did not assist the assessee in establishing exemption or medicinal classification.

Conclusion: "Swad" tablets were held not to be an ayurvedic medicine but a confectionery article, and the tax authorities were justified in levying tax at the residuary rate.

Ratio Decidendi: In fiscal classification, the true nature of a product is determined by its common parlance character, constituents, and actual use, and not by labels, licences, or claimed medicinal description where the evidence does not establish that it is a medicine.

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