Common parlance test for tax classification confirms packing paper falls within the broad paper entry, not plastics.

In classifying surfane packing paper under the Bombay Sales Tax Act, the Court applied the common parlance meaning of "paper" because the Act did not define the term. It held that a product known in the market and used as packing paper falls within the broad entry for "paper of all other kinds," even if manufactured from plastics or other material. The relevant consideration was the ordinary commercial identity of the goods, not the raw material used in production. On that basis, the goods were treated as paper under Schedule C and not as goods made primarily from plastics under Schedule E.

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Issues: Whether surfane packing paper is classifiable as "paper of all other kinds" under entry 24(2) of Schedule C to the Bombay Sales Tax Act, 1959, or as goods made primarily from plastics under entry 19A(c) of Schedule E.

Analysis: The expression "paper" in entry 24(2) was construed in its common parlance sense, since the Act did not define it. The recognised popular meaning of paper includes a substance used for writing, printing, packing, drawing, decorating, or covering walls. Surfane packing paper was found to be known in the market as packing paper and actually used for packing. The material from which it was manufactured was held to be irrelevant where the product was understood in ordinary language as paper and answered the description of paper of all kinds. The broad language of entry 24(2) was treated as sufficient to include such packing paper, and the plastics entry was not applied.

Conclusion: Surfane packing paper falls under entry 24(2) of Schedule C and not under entry 19A(c) of Schedule E; the question was answered in the affirmative in favour of the assessee.

Final Conclusion: The reference was answered by holding that the goods are taxable as paper under the Schedule C entry.

Ratio Decidendi: In taxing statutes, goods must be classified according to their ordinary and common parlance meaning, and a product known and used as paper will fall within a wide paper entry notwithstanding the material used in its manufacture.

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