Common parlance test for sales tax classification excludes water-colour and poster colour from paints and colours entry.

Water-colour and poster colour were held not to fall within entry 97 of the Karnataka Sales Tax Act, which covered "paints, colours, dyes and varnish." Classification was required to follow common and commercial understanding, not a purely dictionary meaning. On that basis, the entry referred to goods ordinarily used for surface painting or coating of walls, doors and furniture, whereas water-colour, poster colour and oil-colour were treated in trade as stationery or drawing materials. The later amendment to entry 97 also supported this construction of the original entry.

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Issues: Whether water-colour and poster colour fall within entry 97 of the Second Schedule to the Karnataka Sales Tax Act, 1957 as "paints, colours, dyes and varnish".

Analysis: Classification under a sales tax entry is to be determined according to the meaning understood in common parlance by persons dealing in and using the goods, and not by a purely dictionary sense. On that approach, paints, colours and varnishes in the relevant entry were construed as articles ordinarily used for surface painting or coating of walls, doors, furniture and similar surfaces, and not as drawing materials sold to students and artists. Water-colour, poster colour and oil-colour were found to be known in the trade as stationery or drawing materials, not goods ordinarily dealt with by hardware or paints merchants. The subsequent amendment to entry 97 also supported this understanding of the original entry.

Conclusion: Water-colour and poster colour do not fall within entry 97 of the Second Schedule, and tax was not exigible at the higher rate under that entry.

Ratio Decidendi: Goods in a sales tax entry must be classified according to their common and commercial understanding, and a subsequent amendment may be used as an aid to construe the scope of the unamended entry.

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