Commodity classification turns on actual commercial use when a product has only one practical use; exempt manure entry prevailed.

Castor de-oiled cake, neem de-oiled cake and mahua de-oiled cake were classified on their commercial and popular sense for Haryana VAT purposes. The High Court held that, on the Tribunal's factual finding that these items were used only as organic manure, the user test could validly determine classification where the product had only one practical use. The items therefore answered the exempt description of organic manure in entry 27 of Schedule B and were excluded from the broader taxable entry for oil-cakes and de-oiled cakes in entry 6 of Schedule C. The challenge to that classification failed.

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Issues: Whether castor de-oiled cake, neem de-oiled cake and mahua de-oiled cake fall under entry 27 of Schedule B as organic manure or under entry 6 of Schedule C as oil-cakes and de-oiled cakes under the Haryana Value Added Tax Act, 2003.

Analysis: The commodity had to be classified in its commercial and popular sense, and the nature of the items, as found by the Tribunal, showed that they were used only as organic manure. Where a product is capable of only one practical use, the user test can properly support classification by that use. On the facts found, the items, though de-oiled cakes in a generic sense, stood excluded from the specific taxable entry for oil-cakes and de-oiled cakes and answered the description of organic manure in the exempt entry.

Conclusion: The items were rightly held to fall under entry 27 of Schedule B and not under entry 6 of Schedule C; the challenge failed.

Ratio Decidendi: In commodity classification, where the factual finding shows that the article is capable of only one actual commercial use, that use may determine its entry, and a specific exempt description covering that use will prevail over a broader taxable entry.

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