Commercial parlance controls sales tax classification: coal cinder is distinct from coal and falls outside the coal rate.

Coal cinder is not treated as coal for sales tax classification under the U.P. Sales Tax Act notifications because commercial parlance recognises cinder as a burn-out residue and a distinct commodity, not a mineral product. The phrase "coal including coke in all its forms, but excluding charcoal" was read as covering coke in its forms, not enlarging coal to include cinder. Earlier authorities supporting the dealer were distinguished or treated as per incuriam for not noticing binding precedent, and departmental views taken in separate proceedings were held not binding on the Tribunal or the Court. The result was that cinder could not be taxed at the coal rate under the notification.

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Issues: Whether coal cinder is taxable as coal at the rate applicable to coal under the relevant notification issued under the U.P. Sales Tax Act, 1948.

Analysis: The dispute turned on the meaning of the expression "coal including coke in all its forms, but excluding charcoal" in the relevant notifications issued under section 3AA of the U.P. Sales Tax Act, 1948. Earlier decisions held that cinder is not coal in commercial understanding, and that coal and cinder are distinct commodities because cinder is a burn-out residue and not a mineral product. The contrary decisions relied upon by the dealer were distinguished on facts, and one was treated as per incuriam because the earlier binding authorities were not noticed. The interpretation of section 14 of the Central Sales Tax Act, which treats coal as including coke in all its forms, was also read as supporting the view that the phrase "in all its forms" qualifies coke and not coal. The Court further held that the departmental view taken in proceedings under section 35 of the U.P. Sales Tax Act, 1948 was not binding on the Tribunal or on the Court.

Conclusion: Coal cinder is not coal for the purpose of the notification and cannot be taxed at the rate applicable to coal; the revision succeeded in favour of the revenue.

Final Conclusion: The Tribunal's classification of coal cinder as coal was set aside and the matter was left for consequential action under the Act.

Ratio Decidendi: For sales tax classification, a commodity must be understood in commercial parlance and a burn-out residue such as cinder is not treated as coal unless the statutory entry or binding authority clearly includes it.

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