Tax classification of magnesite powder turns on proved commercial use, not ordinary parlance, in mosaic tile manufacture.

Magnesite powder, also described as dolomite, used in making mosaic tiles, was analysed for tax classification under the Kerala General Sales Tax Act. Because it was not an article of everyday use, its classification could not be fixed by the ordinary common parlance test alone; its true tax character depended on proved commercial use. The dealer had to explain the actual use of the goods, and the authorities could assess the rate of tax on that basis. On the facts admitted and found, the powder was used as a raw material in tile manufacture, including to soften the mixture and for colour and polish, and was therefore treated as raw material rather than fertiliser.

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Issues: Whether magnesite powder, also described as dolomite, used in the manufacture of mosaic tiles was classifiable as a fertiliser under entry 84 of Schedule I of the Kerala General Sales Tax Act, 1963, or as a raw material falling under entry 72 of that Schedule.

Analysis: The article was not an item of everyday use, so its meaning could not be fixed by the common parlance test in the usual sense. For such an item, its true character for taxation depended on the manner of use proved in the enquiry. The dealer was required to explain the actual use of the goods, and the authorities were competent to determine the rate of tax on that basis. The assessee itself admitted that the goods were used as a raw material in manufacturing mosaic tiles, and the departmental authorities found that the powder was used to soften the mixture of cement, sand and oxide, or as colour and polish in tile manufacture.

Conclusion: The goods were correctly treated as a raw material used in the manufacture of mosaic tiles and not as a fertiliser.

Ratio Decidendi: Where a taxing entry covers an article not known in ordinary everyday use, its classification may be determined by its proved commercial use, and the dealer bears the burden of explaining that use.

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