Commercial parlance test excludes PVC water pipes from a conduit pipes tax entry; narrower wording could not cover them.

PVC water pipes conforming to IS 4985 were held not to fall within entry 136 of the Tamil Nadu General Sales Tax Act as "P.V.C. conduit pipes and fittings". The court applied the common or commercial parlance test for construing a taxing entry, noting that the goods differed in chemical composition, dimensions, manufacture, end use, price, and trade description, and that water pipes are meant for potable water while conduit pipes are used for electrical installations. The later amendment expanding the entry to cover all varieties of PVC pipes, tubes and fittings also showed that the earlier wording was narrower. The assessment under that entry was therefore unsustainable.

---

---

Issues: Whether PVC water pipes conforming to IS 4985 fell within entry 136 of the First Schedule to the Tamil Nadu General Sales Tax Act, 1959 as "P.V.C. conduit pipes and fittings" for the relevant assessment year.

Analysis: The goods were shown to differ in chemical composition, dimensions, method of manufacture, end use, price, and trade description. PVC water pipes were intended for conveyance of potable water, while PVC conduit pipes were intended for electrical installations. In construing a taxing entry, the governing test is the sense in which the goods are understood in the market and in common or commercial parlance, and not a purely dictionary-based or artificial definition. The later amendment expanding the entry to cover all varieties of PVC pipes, tubes and fittings also indicated that the earlier entry was narrower and did not naturally embrace water pipes.

Conclusion: PVC water pipes did not fall under entry 136 as "P.V.C. conduit pipes and fittings" and the assessment under that entry was unsustainable.

---