Commercial meaning of taxing notifications brings polythene goods within plastic goods, attracting the enhanced tax rate.

Polythene goods were held to fall within a taxing notification covering plastic, celluloid, bakelite goods and goods made of similar substance, because the expression was construed in its commercial sense. Polythene bags were treated as plastic-based goods and therefore within the broader notification language; the earlier view on nylon was distinguished on commercial understanding. The enhanced tax rate of seven per cent applied, and assessment at five per cent was not justified.

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Issues: Whether polythene goods are covered by the notification enhancing tax on plastic, celluloid, bakelite goods and goods made of similar substance, so as to attract tax at seven per cent instead of the general rate of five per cent.

Analysis: The question turned on the commercial meaning of the expression used in the notification. Polythene was treated as a plastic-based material, and polythene bags were regarded as goods falling within the broader description of plastic goods and goods made of similar substance. The Court distinguished the earlier view that nylon was not plastic in commercial parlance, and held that polythene, by its essential character and market understanding, was different.

Conclusion: Polythene goods were covered by the notification and were liable to tax at the enhanced rate of seven per cent. The Tribunal was not justified in directing assessment at five per cent.

Ratio Decidendi: In construing a taxing notification, the expressions used must be understood in their commercial sense, and goods that are plastic-based may fall within a notification covering plastic goods and goods made of similar substance.

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