Common parlance test for taxing notifications confirms studded gold jewellery qualifies for the reduced rate on gold ornaments.

Fiscal expressions in a taxing notification must be construed in their ordinary and common parlance sense, not by a narrow technical distinction. On that approach, gold ornaments made for personal use were treated as jewellery, and the presence of precious or semi-precious stones did not remove them from that category. The Court also relied on prior decisions recognising jewellery as included within ornaments. Accordingly, studded gold jewellery was held to fall within the reduced tax rate applicable to gold ornaments, and the reference was answered in favour of the assessee.

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Issues: Whether jewellery and ornaments are the same commercial commodity, and whether sale of studded gold jewellery was exigible to tax at the reduced rate applicable to gold ornaments under the notification.

Analysis: The expression used in the notification was construed in its ordinary and common parlance sense, aided by dictionary meanings and prior judicial decisions. On that approach, gold ornaments made for personal use fall within the ordinary understanding of jewellery, and the presence of precious or semi-precious stones does not exclude them from that category. The Court also noted that prior decisions had treated jewellery as included within ornaments, and that the proper test was how the public at large understands the commodity rather than a narrow or artificial distinction based on studding with stones.

Conclusion: Jewellery and ornaments were held to be the same commercial commodity for the purpose of the notification, and the sale of studded gold jewellery was liable to the reduced rate of tax applicable to gold ornaments.

Final Conclusion: The reference was answered in favour of the assessee, and the Tribunal's view was affirmed.

Ratio Decidendi: Fiscal expressions in a taxing notification must be construed according to their ordinary and common parlance meaning, and gold ornaments remain jewellery even when set with precious or semi-precious stones.

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