Common parlance test for sales tax entries: gold ornaments are not bullion, while G.I. pipe classification needs factual re-examination.

Sales tax entries must be construed in their common parlance sense, and the meaning of associated words in a composite entry must be read in context. Gold ornaments and finished gold articles bought for melting were held not to be "bullion and specie", because bullion means gold or silver in mass and specie means coin or metallic currency; they were therefore taxable at the general rate. For "water supply and sanitary fittings", the phrase was read with "fittings" to cover articles attached to a building or used as auxiliary fittings, not heavy underground mains, and the intended use of G.I. pipes required factual determination. The pipes issue was remanded for fresh consideration.

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Issues: (i) Whether ornaments and other articles of gold purchased for melting fall within entry 56 of the First Schedule to the Kerala General Sales Tax Act, 1963 as "bullion and specie". (ii) Whether G.I. pipes sold by the assessee fall within entry 26A of the First Schedule to the Act as "water supply and sanitary fittings".

Issue (i): Whether ornaments and other articles of gold purchased for melting fall within entry 56 of the First Schedule to the Kerala General Sales Tax Act, 1963 as "bullion and specie".

Analysis: The expression in a sales tax entry has to be understood in its common parlance or popular sense, not in a technical or scientific sense. In ordinary usage, bullion means gold or silver in the mass, as raw or unwrought metal, and specie means coin or metallic currency. Ornaments and finished gold articles are manufactured products and do not answer either description.

Conclusion: The gold ornaments and articles did not fall within entry 56 and were taxable at the general rate under section 5A read with section 5(1)(ii) of the Act.

Issue (ii): Whether G.I. pipes sold by the assessee fall within entry 26A of the First Schedule to the Act as "water supply and sanitary fittings".

Analysis: The expression "sanitary fittings" in popular usage covers pipes or materials used in lavatories, urinals or bath-rooms, and the burden was on the revenue to show that the pipes were meant for such use. The wider phrase "water supply and sanitary fittings" was read in context with the word "fittings", indicating articles fixed to or attached with a building or used as its auxiliary fittings, not heavy pipes laid underground as mains. The matter required factual determination on the intended use of the pipes.

Conclusion: The question whether the G.I. pipes fell within entry 26A was remanded to the Appellate Assistant Commissioner for fresh determination on the existing and additional material.

Final Conclusion: The classification of gold ornaments was decided against the assessee, while the classification of G.I. pipes was left for reconsideration on remand after applying the correct interpretative test.

Ratio Decidendi: Entries in sales tax statutes must be construed in their common parlance sense, and the meaning of associated words in a composite entry must be gathered from the context and the purpose for which the goods are meant to be used.

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