Generic meaning of taxing entries: artificial silk yarn fell within "silk yarn" and remained exempt from sales tax.

A taxing entry using the unqualified expression "silk yarn" was interpreted in its ordinary and generic commercial sense, because the statutory context showed that the legislature distinguished between "pure silk" and "artificial silk" where a narrower meaning was intended. The HC held that the broader wording could not be restricted by implication, and distinguished authorities dealing with different entries and contexts. Artificial silk yarn was therefore included within "silk yarn" and fell within the tax-free schedule, with the assessee held not liable to sales tax under the disputed entry.

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Issues: Whether the expression "silk yarn" in the tax-free schedule included artificial silk yarn, so that the commodity was exempt from sales tax.

Analysis: The expression was construed according to its ordinary grammatical meaning, unless the context required a restricted meaning. The entries in the taxable and exempt schedules used the broad expression "silk yarn" without qualification, and in other entries the legislature had specifically referred to "pure silk" or "artificial silk" where such distinction was intended. On that basis, the expression "silk yarn" was treated as having been used in a generic sense. The cited decisions on artificial silk were distinguished because they concerned different entries and different statutory contexts.

Conclusion: Artificial silk yarn was held to be included within "silk yarn" and was therefore exempt from tax under the relevant exempt entry.

Final Conclusion: The reference was answered in favour of the assessee, and artificial silk yarn was held not liable to sales tax under the disputed entry.

Ratio Decidendi: Where a taxing entry uses a broad commercial expression without qualification, it must be given its ordinary and generic meaning and cannot be narrowed by implication if the legislative context shows that no restricted meaning was intended.

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