Trade meaning of "gunny bags" controls tax classification of jute hand-bags, which were held outside the exemption.

"Gunny bags" under the Mysore Sales Tax Act was construed in its trade and commercial sense because the term was undefined. Bags made of jute do not qualify merely by reason of the material used; the relevant test is whether they are recognised in commerce as gunny bags. Jute hand-bags, being articles meant to be carried by hand and not packing bags, were not so described in commercial usage. On that basis, they were held outside the proviso and the reassessment applying the higher tax rate was upheld against the assessee.

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Issues: Whether hand-bags manufactured out of jute cloth fall within the expression "gunny bags" under the second proviso to section 5(1) of the Mysore Sales Tax Act, 1957.

Analysis: The expression "gunny bags" was not defined in the Act and had to be understood in its trade and commercial sense. Bags made of jute do not automatically qualify as gunny bags merely because of the material used. The relevant inquiry was whether the goods are recognised in trade and commerce as gunny bags. Hand-bags made of jute cloth, though made of jute, are articles meant to be carried by hand and not packing bags; they are not so described in commercial usage.

Conclusion: Jute hand-bags do not fall within the meaning of "gunny bags" under the second proviso to section 5(1); the reassessment treating them as taxable at the higher rate was upheld against the assessee.

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