Fiscal exemption for handmade soap turns on factual classification; unresolved issue sent back for fresh assessment.

Entitlement to sales tax exemption depended on whether the product was handmade soap. The materials and chemical report established that the product was soap, and that basic classification was not disputed by the Revenue. However, the factual question whether it qualified as handmade soap for full exemption under the relevant Government Order had not been examined by the assessing or appellate authority. Because exemption turned on that unresolved factual characterisation, the matter was remitted for fresh determination at the assessment stage.

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Issues: Whether the appellant's turnover was entitled to exemption on the footing that the product manufactured was handmade soap.

Analysis: The product was found on the materials and chemical report to be soap, and that basic classification was not disputed by the Revenue. The further claim that it was handmade soap, attracting full exemption under the relevant Government Order, had not been examined by the assessing authority or the appellate authority. Since entitlement to exemption depended on proof of the factual character of the product, the issue required investigation at the assessment stage.

Conclusion: The product was held to be soap, but the question whether it was handmade soap was left for fresh determination by the assessing authority; the matter was remitted for re-assessment.

Final Conclusion: The assessee obtained a remand and the existing assessment was set aside, but the exemption claim remained open for fresh adjudication on facts.

Ratio Decidendi: Where entitlement to a fiscal exemption turns on an unresolved factual characterisation of the goods, and that factual issue has not been examined by the lower authorities, the proper course is remand for fresh determination.

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