Common parlance test excludes ultramarine blue from "pigment" in a taxing notification, leaving it in the residuary category.

In construing a taxing notification, the controlling test is common parlance, meaning how merchants, consumers and users understand the goods, rather than a technical or scientific meaning. Applying that approach, the Rajasthan HC treated "neel" (ultramarine blue) as a whitening agent used for laundry purposes, not a colour pigment within item No. 18 of the 1970 notification. The later 1977 notification, which separately named ultramarine blue in the taxable list, reinforced that it was not covered by the earlier pigment entry. On that basis, neel was liable only at the residuary rate and not at the higher rate for pigments.

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Issues: Whether "neel" (ultramarine blue) falls within the expression "pigment" in item No. 18 of Notification No. F. 5(22)FD/CT/70-7 dated 9th March, 1970 for the purpose of sales tax classification and whether it was liable to tax at the higher rate applicable to pigments or at the residuary rate.

Analysis: In construing entries in a taxing notification, the controlling approach is the meaning in common parlance, namely the sense in which the goods are understood by merchants, consumers and users, rather than any technical or scientific meaning. The expression "pigment" in the notification was used along with other colouring goods such as dyes, paints, varnishes and dry colours. On that basis, and having regard to ordinary trade understanding, "neel" (ultramarine blue) was treated not as a colour pigment but as a whitening agent used for laundry purposes. The later notification of 1977 specifically named ultramarine blue separately in the taxable list, which reinforced that, before that express inclusion, it was not covered by the earlier entry for pigments.

Conclusion: "Neel" (ultramarine blue) does not fall within the expression "pigment" in item No. 18 of the 1970 notification and was taxable only at the residuary rate of 7 per cent; the assessee succeeded on the reference.

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