Common parlance classification governs soda bicarbonate tax treatment; medicinal use does not displace the chemical entry.

Soda bicarbonate was classified for sales tax purposes by its common and commercial understanding, predominant use, and trade treatment, rather than by an asserted medicinal use. Because the record showed it was ordinarily dealt with as a chemical and sold mainly to chemical and industrial concerns, the chemical entry applied and the medicament claim was rejected. The nature of the buyers did not alter that classification. Earlier tribunal decisions on the same commodity were treated as fact-specific and not controlling on the present record. The commodity was upheld under the chemical entry at 8 per cent for the relevant years, while the issue relating to forms produced in one revision was remitted for fresh assessment.

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Issues: (i) Whether soda bicarbonate was to be classified as medicine or as a chemical for sales tax purposes; (ii) whether the nature of the commodity could be determined by the nature of the buyers and the manner of sale; (iii) whether the earlier tribunal decisions on the same commodity were binding on the present determination.

Issue (i): Whether soda bicarbonate was to be classified as medicine or as a chemical for sales tax purposes.

Analysis: The commodity was examined in the light of its ordinary and commercial meaning, its predominant uses, and the relevant tariff entries. Soda bicarbonate was found to be commonly used as a chemical in baking, soft drinks, cooking and fire extinguishers, and the materials on record did not establish that it was sold as medicine or through medical channels. The authorities also applied the principle that where an article is known and dealt with in trade in a particular category, that classification governs the levy.

Conclusion: Soda bicarbonate was held to fall under the chemical entry and to be taxable at 8 per cent, not as medicine at 6 per cent.

Issue (ii): Whether the nature of the commodity could be determined by the nature of the buyers and the manner of sale.

Analysis: The nature of goods was held to depend on their common and commercial understanding and the manner in which they are ordinarily dealt with in trade, not merely on the possible existence of a medicinal use or on an asserted class of buyers. The record showed sales mainly to chemical and industrial concerns, and no convincing evidence was produced that the goods were sold to chemists or druggists as medicine.

Conclusion: The nature of the buyers did not alter the classification of soda bicarbonate as a chemical.

Issue (iii): Whether the earlier tribunal decisions on the same commodity were binding on the present determination.

Analysis: Prior decisions were considered, but they were treated as fact-specific and not conclusive where the present record and trade evidence pointed to a different classification. The binding force attached only to the factual finding on the commodity as used and sold in the present case.

Conclusion: The earlier tribunal decisions were not treated as controlling for the present assessment.

Final Conclusion: The commodity was upheld as taxable under the chemical entry at 8 per cent for the relevant years, while the matter relating to the forms produced in one revision was remitted for fresh assessment.

Ratio Decidendi: For sales tax classification, the decisive test is the common and commercial parlance in which the goods are known and traded, and where the article is ordinarily bought and sold as a chemical, a claimed medicinal use does not displace the specific chemical entry.

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