Undefined packing material interpreted by common parlance, allowing cable drums to qualify for concessional tax treatment.

Where a statutory expression is undefined, it is construed according to its ordinary commercial meaning and common parlance. Applying that approach, cable drums used to wind and transport aluminium cables were treated as packing material because they kept the cables intact and were the usual means of packing and carriage. The analysis also noted that the department had treated similar drums as packing material in another matter. On that basis, the concession in tax was correctly allowed for the cable drums used with the aluminium cables.

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Issues: Whether cable drums used for winding aluminium cables could be treated as packing material so as to entitle the purchaser to concessional rate of tax.

Analysis: The statutory term "packing material" was not defined. In such a case, its meaning had to be gathered from common parlance and commercial usage. The factual finding was that aluminium cables are ordinarily wound around cable drums to keep them intact and that such drums are the usual means of packing and transporting those cables. On that basis, cable drums served the function of packing material and were treated by the department itself as such in a similar case. The reasoning supported acceptance of the drums as packing material for the goods in question.

Conclusion: Cable drums were packing material for aluminium cables and the concession in tax was correctly allowed.

Ratio Decidendi: Where a statutory expression is undefined, it must be construed according to its ordinary commercial meaning, and an article used in the usual course for containing or securing the goods is packing material for those goods.

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