Common parlance test governs station wagon classification under sales tax notification; fresh evidence required on commercial understanding.

Station wagons had to be classified for sales tax purposes under the common parlance understanding of the goods, not by dictionary meanings or definitions under the Motor Vehicles Act, 1939. The assessing authority was required to determine, on evidence, how station wagons were understood in commercial circles before applying entry 62(b) of the 20 May 1976 notification. Because no independent factual finding had been recorded on that question for either assessment year, the tax orders applying 12 per cent to station wagons were set aside and the matter was remanded for fresh determination after hearing the parties and receiving evidence.

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Issues: Whether station wagons were correctly taxed at 12 per cent under entry 62(b) of the 20th May, 1976 notification, or whether the classification required determination in common parlance on the evidence before the assessing authority.

Analysis: The dispute turned on the proper construction of the sales tax notification classifying motor vehicles. The Court held that dictionary meanings and definitions under the Motor Vehicles Act, 1939 were not decisive for construing the sales tax notification. Classification had to be made according to the common parlance understanding of the goods, i.e. how station wagons were understood in commercial circles. The assessing authority had not recorded a finding on that factual question for either assessment year and had merely followed an earlier decision without independently examining the evidence.

Conclusion: The assessment orders, insofar as they levied tax at 12 per cent on station wagons, were set aside and the matter was remanded to the assessing authority to decide afresh after giving the parties an opportunity to lead evidence on the proper classification of station wagons under entry 62(b).

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