Common parlance test for plastic pipes: polyethylene pipes fall within the taxing entry and are liable to tax.

Polyethylene pipes are treated as articles made of plastic for the purpose of entry 110 of the Second Schedule, because the controlling test is their understanding in common parlance by dealers and users. On that approach, a pipe manufactured from polyethylene answers the description of a plastic pipe and falls within the taxing entry. A distinction based only on the exact synthetic variant or brand name does not take the goods outside the entry, so such pipes are liable to tax under the schedule.

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Issues: Whether polyethylene pipes are covered by entry 110 of the Second Schedule as articles made of plastic, polythene or polyvinyl chloride and thus exigible to tax.

Analysis: The determining test is how the goods are understood in common parlance by those dealing in or using them. Applying that test, a pipe made of polyethylene answers to the description of a plastic pipe and falls within the relevant entry. A mere distinction based on the precise variety or brand name of the synthetic substance does not take the goods outside the taxing entry.

Conclusion: The polyethylene pipes were held to fall within entry 110 and were liable to tax.

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