Fiscal classification of de-oiled rice bran cake follows rice bran entry, not residuary taxation, under Karnataka sales tax law.

De-oiled rice bran cake was treated as the same commercial commodity as rice bran because the de-oiling process removed only oil and did not create a new product with different essential character or use. In a fiscal classification dispute, the common parlance test applies only where the entry is unclear, and where two interpretations are possible the one favouring the assessee is preferred. As the Schedule specifically covered rice bran and rice bran oil, the residuary entry could not be used to classify de-oiled rice bran cake separately. The commodity was therefore covered by entry 8(iii) of Part C of the Second Schedule, and the Commissioner's clarification was quashed.

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Issues: Whether de-oiled rice bran cake is a distinct commercial commodity from rice bran and, if not, whether it falls within entry 8(iii) of Part C of the Second Schedule to the Karnataka Sales Tax Act, 1957 or can be taxed only under the residuary provision.

Analysis: The de-oiling process was found to remove only the oil content while leaving the essential ingredients and character of rice bran intact. No new product with different chemical components emerged, and the commodity remained usable for the same cattle-feed purpose. In a fiscal entry dispute, the common parlance test is relevant only where the meaning is unclear, and where two views are possible the interpretation favouring the assessee is to be preferred. Since the Schedule specifically dealt with rice bran and rice bran oil, the residual classification could not be invoked to create a separate category of rice bran with reduced oil content.

Conclusion: De-oiled rice bran cake was held to be covered by entry 8(iii) of Part C of the Second Schedule and not liable to be treated as a separate residuary commodity. The clarification issued by the Commissioner was quashed.

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