Commercial parlance for exempted textiles: banners, hangers and flags made from textile material were held taxable.

Banners, hangers and flags made from textile material were held not to fall within the exempting entry for textiles because the entry was treated as exhaustive and the goods were commercially distinct articles. The court applied a trade or commercial parlance approach and held that mere manufacture from textile material did not bring these items within entry 4 of the Third Schedule. Exemption was therefore unavailable, the turnover remained taxable, and the Tribunal's contrary view was set aside in favour of the Revenue.

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Issues: Whether banners, hangers and flags made out of textiles fall within entry 4 of the Third Schedule to the Tamil Nadu General Sales Tax Act, 1959 as textiles and are therefore exempt from sales tax.

Analysis: Entry 4 was worded in both exclusive and inclusive terms and was treated as exhaustive. Although textiles was construed broadly in earlier decisions and the entry included certain specified textile products, the present goods were commercially distinct articles known and recognised as banners, hangers and flags. Their character in trade did not justify treating them as textiles within the entry merely because they were manufactured from textile material.

Conclusion: The goods did not fall within entry 4 of the Third Schedule, and the exemption was not available. The turnover was correctly brought to tax, and the finding of the Tribunal was set aside in favour of the Revenue.

Final Conclusion: The revision succeeded, the assessed turnover remained taxable, and the exemption claim was rejected.

Ratio Decidendi: Where a taxing entry is exhaustive, articles commercially known as distinct goods cannot be brought within the entry merely because they are made from the enumerated material.

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