Commercial classification of woollen cardigans and pullovers governs sales tax treatment where trade meaning controls.

Classification of woollen cardigans and pullovers for sales tax depended on their commercial and common parlance meaning. The Tribunal found, on the evidence, that these goods are treated in trade as articles of hosiery rather than woollen goods, and that factual finding was treated as binding in revision because only questions of law were open under section 11 of the U.P. Sales Tax Act, 1948. The result was that woollen cardigans and pullovers were taxed as hosiery goods, not as woollen goods.

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Issues: Whether woollen cardigans and pullovers are to be treated as articles of hosiery or as woollen goods for the purpose of sales tax.

Analysis: The dispute turned on the commercial and common parlance understanding of the goods. The Tribunal, on appraisal of the evidence, found that woollen cardigans and pullovers are treated in commercial circles as articles of hosiery and not as woollen goods. In revision under section 11 of the U.P. Sales Tax Act, 1948, interference was confined to questions of law, and the finding recorded by the Tribunal on the character of the goods was treated as a finding of fact binding on the Court.

Conclusion: Woollen cardigans and pullovers were held liable to be taxed as hosiery goods, and not as woollen goods.

Ratio Decidendi: Classification of goods for sales tax is to be determined by their commercial or common parlance meaning, and a factual finding by the Tribunal on that basis is binding in revision where only questions of law are open.

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