Common parlance classification in taxation upheld for milk powder, with valid differentiation from fresh milk under Article 14.

In taxation, a legislative classification survives Article 14 if the goods are distinct in common parlance and the differentiation has intelligible differentia with a rational nexus to the tax object. Fresh milk and milk powder are treated as separate commodities because they differ in form, use, preparation and preservation. On that basis, the sales tax entry validly distinguishes them, is not discriminatory, and sales tax may be levied on milk powder.

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Issues: Whether the classification between fresh milk and milk powder or milk foods in the sales tax entry was discriminatory and violative of Article 14 of the Constitution, and whether sales tax could validly be levied on sales of milk powder.

Analysis: In taxation matters, the State has wide discretion to select objects of taxation and to exempt others, provided the classification is reasonable and does not operate unequally upon similarly situated persons or goods. The expression used in a taxing entry must be understood in common parlance, not in a technical or scientific sense. On that basis, fresh milk and milk powder are distinct commodities: they differ in form, use, mode of preparation, preservation, and common understanding. The legislative distinction between fresh milk and milk powder therefore rests on intelligible differentia and has a rational nexus with the object of taxation. The cited authorities on classification in taxation and the common parlance rule support the validity of such a distinction, while decisions dealing with different statutory language or different entries do not control the present issue.

Conclusion: The classification is valid, the entry is not violative of Article 14, and sales tax on milk powder is legally leviable.

Ratio Decidendi: In a taxing statute, a legislative classification will withstand Article 14 if it distinguishes goods on a rational basis understood in common parlance and the differential treatment rests on intelligible differentia with a reasonable nexus to taxation.

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