Goods classification requires factual finding on product nature and use before tax assessment can be decided afresh.

Where tax authorities have not made a conclusive finding on the true nature and use of goods, a revisional court may decline to decide classification itself and remit the matter for fresh determination. Here, the record did not establish whether GLA-120 capsules were an unclassified product, dietary supplement, or medicine, and no authority had examined the commodity's essential character or purpose of sale. The court therefore set aside the assessment orders and the Tribunal's order and directed reconsideration by the assessing authority, with a reasonable opportunity of hearing to the assessee before a fresh order is passed.

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Issues: Whether, in the absence of a finding by the authorities on the true nature of GLA-120 capsules, the assessment orders and the Tribunal's order should be set aside and the matter remanded for fresh consideration.

Analysis: The commodity was described in the material placed before the Court as a capsule containing gamma linolenic acid and was claimed at different stages to be an unclassified item, a dietary supplement, or a medicine. The record showed that no authority had recorded a finding on the essential nature of the commodity or on the purpose for which it was sold. In a revision under Section 41, the Court declined to undertake that factual exercise itself. Since the correct classification required verification of the product and its use, the matter had to be reconsidered by the assessing authority. The assessee was also entitled to a reasonable opportunity of hearing before a fresh order was made.

Conclusion: The assessment orders and the Tribunal's order were set aside and the matter was remanded to the assessing authority for fresh decision in accordance with law.

Final Conclusion: The dispute was not finally decided on classification, but the tax assessments were reopened for fresh adjudication by the assessing authority.

Ratio Decidendi: Where the true nature and classification of goods have not been conclusively found by the tax authorities, a revisional court may set aside the existing orders and remit the matter for fresh determination rather than decide the classification itself.

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