Common parlance test for taxing entries confirms groundnut and linseed oils are taxable as vegetable non-essential oils.

In construing a taxing entry, the common and commercial parlance test applied: "vegetable non-essential oils" was read to exclude only essential oils, not all edible oils. Groundnut and linseed oils, being vegetable fixed oils rather than essential oils, fell within entry 6A and were taxable under the Bombay Sales Tax Act, 1959. On the penalty issue, the record showed service of notice and an opportunity of hearing, and the admitted failure to file returns satisfied section 36(2)(c); the briefness of the order did not invalidate it where the statutory conditions were met. The assessment and penalty were upheld.

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Issues: (i) Whether oils extracted from groundnut and linseed fell within entry 6A of Schedule D, Part I of the Bombay Sales Tax Act, 1959 as "vegetable non-essential oils" and were accordingly liable to general sales tax; (ii) whether the penalty imposed for failure to file returns under section 36 of the Bombay Sales Tax Act, 1959 was invalid for want of reasons.

Issue (i): Whether oils extracted from groundnut and linseed fell within entry 6A of Schedule D, Part I of the Bombay Sales Tax Act, 1959 as "vegetable non-essential oils" and were accordingly liable to general sales tax.

Analysis: The entry had to be construed according to the common and commercial parlance test applicable to taxing statutes. The words "vegetable" and "non-essential" qualified the word "oil" and excluded only essential oils, which are a distinct commercial and scientific category of volatile vegetable oils used for perfume, flavouring, and similar purposes. The term "non-essential" was not synonymous with "non-edible", and edible character did not make an oil "essential". Groundnut and linseed oils are vegetable fixed oils and do not fall within the category of essential oils.

Conclusion: The oils sold by the petitioner were covered by entry 6A and were taxable. This issue was decided against the petitioner.

Issue (ii): Whether the penalty imposed for failure to file returns under section 36 of the Bombay Sales Tax Act, 1959 was invalid for want of reasons.

Analysis: The record showed that notice had been served and hearing had been afforded before the penalty order. The admitted failure to file returns brought the case within section 36(2)(c), and the order could not be treated as vitiated merely because it was brief when the statutory conditions for penalty were plainly satisfied.

Conclusion: The penalty order was valid and this issue was decided against the petitioner.

Final Conclusion: The sales tax assessment and the penalty were upheld, and the petition failed in full.

Ratio Decidendi: In construing a taxing entry, words must be given their common and commercial meaning, and an oil described as "vegetable non-essential" covers vegetable fixed oils excluding only essential oils, not all edible oils.

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