Commercial meaning of artificial silk includes synthetic fabrics like Terylene, Dacron and Nylon for sales tax exemption.

The expression "artificial silk" in item 4 of the Third Schedule to the Madras General Sales Tax Act, 1959 was construed in its popular and commercial sense, not by a narrow scientific or etymological meaning. On that approach, Terylene, Terene, Dacron, Nylon and similar synthetic fabrics were treated as man-made synthetic fibres falling within "artificial silk" and therefore eligible for the relevant sales tax exemption. The Court also noted that the meaning adopted in the Art Silk Textiles (Production and Distribution) Control Order, 1962 could not control the Act's language, and that consistent treatment under related fiscal enactments supported the broader commercial meaning.

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Issues: Whether Terylene, Terene, Dacron, Nylon and similar synthetic fabrics fall within the expression "artificial silk" in item 4 of the Third Schedule to the Madras General Sales Tax Act, 1959, and are therefore exempt from sales tax, and whether the assessing authority could proceed on the contrary view by issuing notices to reopen concluded assessments.

Analysis: The expression "artificial silk" was construed according to its popular and commercial sense, not by a restricted scientific or etymological meaning. The Court relied on trade understanding, departmental and governmental classifications, and the consistent treatment of such goods as man-made synthetic fibres or art silk under several fiscal enactments, including the Central Excises and Salt Act, 1944, the Central Sales Tax Act, 1956, and the Additional Duties of Excise (Goods of Special Importance) Act, 1957. The Court also held that the definition in the Art Silk Textiles (Production and Distribution) Control Order, 1962 could not control the meaning of the same expression in the Madras General Sales Tax Act, 1959. On that basis, the Court held that the assessing authority's assumption that the goods were not art silk was erroneous and that the threatened reopening of assessments was without jurisdiction.

Conclusion: Terylene, Terene, Dacron, Nylon and similar fabrics were held to be artificial silk within item 4 of the Third Schedule to the Madras General Sales Tax Act, 1959, and the writ petitions were allowed with a writ of prohibition against the proposed reassessment and levy.

Ratio Decidendi: In taxing statutes, where a commercial expression is used without a special statutory definition, it must be construed in its popular and commercial sense as understood by those dealing in the goods; on that test, consistently treated man-made synthetic fabrics may fall within a broader category such as artificial silk.

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