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2022 (8) TMI 698 - HC - VAT and Sales TaxClassification of manufactured goods - Robinson Barley - Purity Barley - taxable under the entry meant for cereals covered under Entry 16 List C @ 4% or under the residual entry at 12%? - HELD THAT:- In the present case, as correctly noted in the judgment in SATYANARAYAN BHANDAR VERSUS STATE OF ORISSA AND OTHERS [2006 (8) TMI 552 - ORISSA HIGH COURT], the words used by the legislature in the delineation of articles are to be understood in the ‘trade sense’ i.e. the commercial understanding of the terms used and not in their scientific and technical sense. In other words, the Court is required to apply the “common parlance test”. In the present case, there can be no doubt that in trade parlance ‘Robinson Barley and Purity Barley’ would not be simply understood as ‘barley’ - In other words, they are identifiable, distinct, commercial products different from ordinary ‘barley’. If a customer went to a shop and asked for barley, such customer would not be supplied Robinson Barley or Purity Barley. Conversely, if the customer was to ask for Robinson Barley or Purity Barley, then he would not be supplied with plain barley. The distinct commercial product ‘Robinson Barley’ cannot, as pointed out in Satyanarayan Bhandar be classified as ‘cereal’ which is taxable @4% and has to be brought under the residual entry taxable @ 12%. The question framed is answered in favour of the Department and against the Assessee by holding that Robinson Barley and Purity Barley manufactured by the Petitioner should be taxed under the residual Entry 189 of List C of the Rate Chart appended to the OST Act and not Entry 25 relating to ‘cereals’ - revision petition dismissed.
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