Common parlance test governs sales tax classification of soya nuggets as a vegetarian food product, not a dry vegetable.

The Gauhati HC applied the common parlance test to classify soya nuggets under the Assam General Sales Tax Act. Because the statute did not specifically define the commodity, the Court looked to how persons conversant with the trade and consumers would understand it. It found that soya nuggets are manufactured from de-oiled cake, suji, rice and soda, and are a vegetarian food product, not a dry vegetable. Accordingly, the product did not fall within Item 1(b) of Schedule II and was more appropriately covered by the residuary Item 2 of Schedule III.

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Issues: Whether soya nuggets manufactured by the assessee fall within Item 1(b) of Schedule II to the Assam General Sales Tax Act, 1993 as dry vegetable, or whether they fall under Item 2 of Schedule III as a residuary item.

Analysis: For tax classification, the statutory definition governs where a commodity is specifically covered. Where the statute does not define the commodity, the common parlance test is ordinarily applied, with the meaning understood by persons conversant with the subject-matter preferred over technical or dictionary meaning. Applying that approach, the product in question was found to be manufactured from ingredients such as de-oiled cake, suji, rice and soda, and it does not undergo the process by which a vegetable becomes a dry vegetable. The product may be a vegetarian food item, but that does not make it a dry vegetable. In common understanding, both purchasers and vendors would treat it as a vegetarian food product rather than as vegetable or dry vegetable.

Conclusion: Soya nuggets are not classifiable under Item 1(b) of Schedule II and are more appropriately covered by Item 2 of Schedule III.

Final Conclusion: The assessee's claim for assessment under the lower-rated entry failed, and the revenue's classification prevailed.

Ratio Decidendi: Where a commodity is not specifically defined in the taxing statute, its classification must be determined by common parlance, and a processed vegetarian food product that is not understood in trade or by consumers as a dry vegetable cannot be treated as a dry vegetable entry for sales tax purposes.

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