Commercial parlance test excludes processed cast iron machinery parts from declared goods treatment.

Machinery parts made from cast iron were treated as distinct commercial goods and not as cast iron castings under entry 2(i) of the Andhra Pradesh General Sales Tax Act, 1957. The governing test is commercial parlance: crude or basic cast iron castings may fall within the entry, but once they are machined, polished, refined, or otherwise processed into identifiable finished products, they lose the character of declared goods. On that principle, goods described and sold as machinery parts were outside the entry and did not qualify for declared goods treatment.

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Issues: Whether machinery parts manufactured from cast iron are covered by entry 2(i) of the Third Schedule to the Andhra Pradesh General Sales Tax Act, 1957 as cast iron castings.

Analysis: The relevant test is whether the goods are understood and dealt with in commercial parlance as cast iron castings or as distinct finished goods. Cast iron castings in their basic or rough form may fall within the entry, but once they are subjected to machining, polishing, refinement, or other processing to produce identifiable commercial products such as machinery parts, they cease to be cast iron castings. The goods described and sold as machinery parts were treated by the Tribunal as different commercial goods, and that finding was consistent with the governing principle that only crude castings remain within the entry as declared goods.

Conclusion: The machinery parts were not covered by entry 2(i) as cast iron castings and were not entitled to treatment as declared goods.

Ratio Decidendi: Cast iron castings lose their character as declared goods when, after processing, they become separate commercial commodities known and sold as finished goods such as machinery parts.

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