Trade meaning controls fiscal classification: steel trunks were not hardware and not taxable at the higher rate.

In construing an undefined fiscal entry, the commercial or trade understanding of the expression governs, not dictionary meaning alone or the fact that goods are made of base metal. Applying that test, steel trunks were held not to fall within the commercial class of "hardware" or mill-stores, as those trades ordinarily cover small metal articles such as nuts, bolts, hinges and rivets. The higher sales tax rate applicable to hardware therefore did not apply to steel trunks, and their turnover was not taxable at the enhanced rate.

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Issues: Whether steel trunks fell within the expression "hardware" in the relevant sales tax notification and were liable to tax at the enhanced rate applicable to hardware.

Analysis: The expression "hardware" in a fiscal entry, where no statutory definition exists, is to be understood in the sense in which the business community understands it. Reference to dictionaries is not conclusive; trade understanding and commercial usage are controlling. On the material examined, hardware and mill-stores were allied trades dealing ordinarily with small metal articles such as nuts, bolts, hinges, rivets and similar goods. Steel trunks were found to belong to a separate category of iron and steel trade and not to the commercial class of hardware or mill-stores.

Conclusion: Steel trunks were not "hardware" for the purposes of the notification, and their turnover was not taxable at the higher rate applicable to hardware.

Ratio Decidendi: In construing an undefined fiscal entry, the controlling test is the commercial or trade understanding of the expression, not the mere dictionary meaning or the fact that the goods are made of base metal.

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