Commercial identity controls tax classification: packed jaljira remained outside packed masala and stayed under the residuary entry.

Classification for sales tax purposes turned on the product's commercial identity and dominant character in common parlance. Jaljira, consisting mainly of salt, mineral and chemical ingredients with only a small proportion of spices, was consumed as a drink or appetiser and was known in trade as jaljira, not as a cooking masala or food ingredient. It was not brought within the packed masala or multi-ingredient packed masala entries merely because it was sold in packed form. The residuary entry therefore applied, and the higher rate classification was rejected.

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Issues: Whether jaljira manufactured and sold in packed form was liable to be treated as packed masala or multi-ingredient packed masala under the relevant rate notifications, or whether it retained an independent identity and was taxable under the residuary entry.

Analysis: The product was found to consist predominantly of salt, mineral and chemical ingredients, with only a small proportion of spices. It was not used as a cooking medium or as an additional constituent in food preparation, but was consumed as a drink or appetiser, and was known in trade and commerce as jaljira. The earlier assessment had treated it under the residuary category at 10 per cent, while the authorities below shifted it to the packed masala entry merely because it was sold in packed form. The relevant notifications covered eatables, drink concentrates and packed masala, later substituted by multi-ingredient packed masala, but the product was not shown to answer that description in its commercial sense.

Conclusion: Jaljira was not taxable as packed masala or multi-ingredient packed masala and could not be brought under the higher rate entry merely because it was sold in packed condition. The assessee succeeded and the assessment adopted by the department was set aside.

Final Conclusion: The product was held to have an independent commercial identity as an appetiser and remained outside the packed masala category under the rate notifications, so the assessee's tax treatment under the residuary entry was restored.

Ratio Decidendi: Classification for sales tax purposes depends on the product's commercial identity and dominant character in common parlance, and a packed edible preparation does not become masala unless it is understood and marketed as such.

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