Trade parlance test for fiscal entries: soft waste of cotton treated as cotton and kept exempt under the sales tax law.

Where a fiscal entry is undefined, it is construed in its common or trade parlance rather than by technical meaning. Applying that test, the tribunal noted that trade materials, purchase vouchers and a commissioner's circular showed soft waste of cotton was commercially recognised as a variety of cotton and was distinct from cotton waste. Cotton waste was separately understood in trade and had also lost exemption from the relevant date. On that basis, the term cotton in entry 38 of Schedule I was held wide enough to cover soft waste of cotton, which therefore remained exempt under section 6 of the Bengal Finance (Sales Tax) Act, 1941.

---

---

Issues: Whether soft waste of cotton is to be treated as cotton within entry 38 of Schedule I to the Bengal Finance (Sales Tax) Act, 1941, or as cotton waste liable to tax.

Analysis: In the absence of a statutory definition, the meaning of the fiscal entry had to be ascertained according to the common parlance or trade parlance test. The materials placed on record, including purchase vouchers, trade references and the Commissioner's circular, showed that soft waste of cotton was recognised in the trade as a variety of cotton and was distinct from cotton waste. Cotton waste was separately understood in commercial circles and had also lost its exemption from the relevant date. On that basis, the expression cotton in entry 38 was held to be wide enough to include soft waste of cotton.

Conclusion: Soft waste of cotton falls within the meaning of cotton under entry 38 of Schedule I to the Bengal Finance (Sales Tax) Act, 1941, and is exempt under section 6 of the Act.

Ratio Decidendi: Where a fiscal entry is undefined, it must be interpreted in its popular or trade sense, and an item recognised in commercial parlance as a variety of the exempt commodity is covered by that entry.

---