Popular and commercial meaning governs exemption entries for gram chhilka, which was treated as tax-free fodder.

Words in a taxing exemption schedule must be construed in their popular and commercial sense, as understood in the market by persons dealing with the commodity. On that approach, gram chhilka was treated as the brown skin of gram and not as gram husk in the commercial sense of item 15, which refers to husk of foodgrains. It was also commonly used as cattle feed and therefore fell within fodder under item 54. Because either entry was sufficient to place the commodity in Schedule B, gram chhilka was tax-free and the sales tax levy on it was unsustainable.

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Issues: Whether gram chhilka is covered by item 15 or item 54 of Schedule B to the Punjab General Sales Tax Act, 1948 so as to be tax-free.

Analysis: The expression used in the exemption schedule had to be construed in the sense in which it is ordinarily understood in the market and by persons conversant with the commodity. On that approach, gram chhilka was treated as the brown skin of gram and not as gram husk in the commercial sense of item 15, which denotes the husk of foodgrains. The Court further held that gram chhilka is commonly used as cattle feed and therefore answers the description of fodder under item 54. Since either of the two entries was sufficient to bring the commodity within the tax-free schedule, the levy of sales tax on gram chhilka could not stand.

Conclusion: Gram chhilka is covered by item 54 of Schedule B and is exempt from sales tax; the impugned assessment on that commodity is unsustainable.

Ratio Decidendi: Words in a taxing exemption entry must be construed in their popular and commercial sense, and a commodity falls within the exemption if it answers the ordinary understanding of the relevant entry.

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