Popular commercial meaning governs tariff classification of ultramarine blue as a pigment or colourant

Undefined words in a taxing statute are construed in their popular or commercial sense, as understood in trade rather than in a technical or scientific sense. Applying that approach, ultramarine blue was described as having multiple uses in paints, enamels, inks, textiles, soaps and cosmetics, and trade materials supported its recognition as a pigment or colourant. The discussion distinguishes a Gujarat decision on its different evidentiary record and notes that the petitioner did not show ultramarine blue was commonly understood as a separate product outside the scope of pigments or colourants.

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Issues: Whether ultramarine blue manufactured by the petitioner was a "pigment", "colour" or "paint" falling under Item No. 14-I(5) of the First Schedule to the Central Excises and Salt Act, 1944, and whether the excise duty levied on it was liable to be refunded.

Analysis: The Court applied the settled rule that undefined words in a taxing statute must be construed in their popular or commercial sense, as understood by persons dealing in the goods, rather than in a technical or scientific sense. On the evidence, ultramarine blue was shown to have multiple uses in paints, enamels, inks, textiles, soaps, cosmetics and allied products, and the material placed before the Court, including standard technical dictionaries and trade publications, supported its recognition as a pigment or colorant. The Court distinguished the Gujarat decision relied upon by the petitioner on the ground that it had proceeded on a different evidentiary record. The petitioner failed to establish that ultramarine blue was understood in common parlance as a separate product outside the scope of pigments or colourants.

Conclusion: Ultramarine blue was held to be a pigment falling within Item No. 14-I(5), and the levy of excise duty was upheld. The claim for refund was rejected.

Final Conclusion: The rule was discharged and the challenge to assessment and refund failed.

Ratio Decidendi: Where a tariff entry uses undefined expressions, classification depends on the popular and commercial meaning of the goods, and a product commonly understood and used as a pigment or colorant falls within the excise entry for pigments even if it has a technical description or incidental whitening use.

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