Classification of common salt in biscuit manufacture turned on commodity character, securing exemption over industrial-use taxation.

Common salt used in biscuit manufacture was treated as common salt for human consumption, because the relevant statutory test was the commodity's character and the purpose for which it was used, not the buyer's industrial use. The court relied on its earlier view in the assessee's own case, which had been accepted by the Revenue, and found no change in the commodity or circumstances. Entry 62 covered only salt for industrial use, while Entry 7 exempted common salt, other than salt for industrial use. The assessee therefore fell within the exemption under Entry 7 and not the taxable entry under Entry 62.

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Issues: Whether common salt purchased and used in manufacture of biscuits was classifiable as salt for industrial use under Entry 62 of Part B of the First Schedule to the Tamil Nadu General Sales Tax Act, or as common salt for human consumption eligible for exemption under Entry 7 of Part B of the Third Schedule.

Analysis: The disputed commodity was common salt, and the earlier decision in the assessee's own case for prior assessment years had already held that the same commodity was common salt meant for human consumption, with the user being immaterial and the relevant test being the purpose for which the salt was used. That earlier view had been accepted by the Revenue and no changed circumstances or difference in the commodity were shown for the present years. On the language of the entries, Entry 62 covers only salt for industrial use, whereas Entry 7 specifically exempts common salt (sodium chloride), other than salt for industrial use. The distinction drawn by the statutory entries was therefore decisive, and the Revenue's reliance on the assessee's industrial use could not override the commodity's character as common salt.

Conclusion: Common salt purchased and used by the assessee was held to fall under Entry 7 of Part B of the Third Schedule and not under Entry 62 of Part B of the First Schedule; the assessee was entitled to exemption.

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