Commercial sense governs tax exemption classification: groundnut kernel was not treated as a vegetable seed for cultivation exemption.

Tax exemption entries must be construed in their popular and commercial sense, and an exemption for vegetable seeds sold for cultivation cannot be extended to goods not shown to be intended for that purpose. Groundnut kernel is understood in commerce as an oil-seed used for extraction of oil, not as a vegetable seed, and there was no evidence that the assessee's sale was for cultivation. The exemption notification therefore did not apply, and the turnover relating to groundnut kernel remained taxable.

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Issues: Whether groundnut kernel could be treated as a vegetable seed entitled to exemption under the relevant sales tax notification.

Analysis: The exemption applied to vegetable seeds and was intended for seeds sold for cultivation. There was no evidence that the groundnut kernel sold by the assessee was meant for cultivation. In commercial parlance, groundnut is understood as an oil-seed used for extraction of oil, and not as a vegetable seed. Applying the popular sense of the word "vegetable", groundnut kernel could not be brought within the exemption.

Conclusion: The groundnut kernel was not a vegetable seed and the exemption notification was inapplicable. The issue is decided against the assessee.

Final Conclusion: The assessment made on the turnover relating to groundnut kernel was upheld and the appeal was dismissed.

Ratio Decidendi: For tax exemption entries, classification of goods must be determined in their popular and commercial sense, and an exemption meant for seeds for cultivation cannot be extended to goods not shown to be sold for that purpose.

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