Common parlance test governs sales tax classification of twisted cotton fishing twine; matter remitted for fresh consideration.

For sales tax classification, the true character of a commodity must be determined by its meaning in common and commercial parlance, not by dictionary usage or by the mere fact that it is made from cotton yarn. The Court held that twisted cotton fishing twine could not be treated as cotton yarn simply because of its constituent material. As the actual commodity was not available for final determination, the Court declined to finally decide classification, set aside the Tribunal's order, and remitted the appeals for reconsideration on the correct common parlance test.

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Issues: Whether the commodity described as twisted cotton fishing twine is cotton yarn within item 4(ii) of the Second Schedule to the Kerala General Sales Tax Act, 1963.

Analysis: Classification under sales tax enactments must be determined by the meaning of the goods in common parlance and in the commercial world, not by dictionary meaning or by reference to the raw material alone. A commodity does not become cotton yarn merely because it is made out of cotton yarn; the relevant inquiry is whether the article is understood as cotton yarn as such. On the material before the Court, the actual commodity was not available for final determination, and the Court declined to express a conclusive view on its classification. The Tribunal's reliance on the Madras decision was held to be misplaced because the proper common parlance approach had not been applied in the manner indicated by the Supreme Court authorities.

Conclusion: The classification was not finally determined, and the Tribunal's order was set aside with a direction to reconsider the appeals afresh on the correct legal test.

Final Conclusion: The matter was remitted to the Tribunal for fresh decision on classification in accordance with the common parlance principle.

Ratio Decidendi: For sales tax classification, the true nature of the commodity must be ascertained by how it is understood in ordinary and commercial parlance, and not merely by its constituent material or dictionary description.

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