Common parlance test for exemption: hessian treated as cloth and exempt from sales tax.

The expression "all varieties of cloth" in the exemption schedule was construed in its ordinary and popular sense, and hessian was held to fall within that meaning because the term "cloth" was wide enough to include coarse sacking made of hemp or jute. The fact that hessian was separately named in another sales tax schedule did not narrow the broader exemption language in the later statute. Applying the common parlance test, hessian was treated as cloth for the exemption entry, and its sale was therefore not taxable under the Bombay Sales Tax Act, 1953.

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Issues: Whether hessian is covered by entry 1 of Schedule I of the Bombay Sales Tax Laws (Special Exemptions) Act, 1957, and whether its sale is taxable under the Bombay Sales Tax Act, 1953.

Analysis: The expression "all varieties of cloth" in Schedule I was construed in its ordinary and popular sense. The Court noted that the dictionary meanings of "cloth" are wide enough to include hessian, which is a coarse sacking made of hemp or jute and is manufactured in mills. The fact that hessian was separately specified in the sales tax schedule of the taxing Act did not justify restricting the wider exemption language in the later exempting Act. The object of the exempting statute was broad, and its wording was sufficient to include cloth beyond items covered by the additional excise scheme. Applying the common parlance approach, hessian was treated as cloth within the meaning of the exemption entry.

Conclusion: Hessian is covered by entry 1 of Schedule I of the Bombay Sales Tax Laws (Special Exemptions) Act, 1957, and its sale is not taxable under the Bombay Sales Tax Act, 1953.

Ratio Decidendi: A commercial product is to be classified under an exemption entry according to its ordinary popular meaning, and where the statutory language is broad enough, a specific commercial variety will not be excluded merely because it is separately mentioned for tax purposes elsewhere.

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