Commercial meaning of fiscal entry controls exemption for ayurvedic raw materials; herbs and roots stayed taxable.

An undefined fiscal entry must be read in its common commercial sense, not in a scientific or botanical sense, and the associated words in the entry take colour from each other under noscitur a sociis. On that approach, "flowers and plants" in Schedule I was confined to decorative flowers and plants of a similar decorative character, not to all botanical parts of a plant. Dried roots, bark-clippings, fruits and medicinal herbs used as raw materials for ayurvedic medicines therefore fell outside the exemption and remained liable to purchase tax under section 4(6)(iii) of the Bengal Finance (Sales Tax) Act, 1941.

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Issues: Whether purchases of herbs, roots, bark-clippings and similar items used in the manufacture of ayurvedic medicines were covered by entry 47 of Schedule I to the Bengal Finance (Sales Tax) Act, 1941 as "flowers and plants", and therefore exempt from purchase tax, or were liable to tax under section 4(6)(iii) of that Act.

Analysis: The expression "flowers and plants" was not defined in the Act or the Rules, so it had to be construed in its common parlance or commercial parlance sense rather than in a scientific or botanical sense. The setting of entry 47, the juxtaposition of the words "flowers" and "plants", and the structure of Schedule I showed that the Legislature did not intend "plants" to cover every part of the vegetable kingdom or all botanical parts of a plant. Applying the principles of noscitur a sociis and contextual interpretation, the expression was understood as decorative flowers and plants producing such flowers or having similar decorative qualities. Dried roots, fruits, bark-clippings and medicinal herbs purchased as raw materials for ayurvedic drugs did not answer that description.

Conclusion: The goods were not covered by entry 47 of Schedule I and were liable to purchase tax under section 4(6)(iii) of the Bengal Finance (Sales Tax) Act, 1941. The finding of the taxing authorities was upheld and the application failed.

Ratio Decidendi: An undefined fiscal entry must be construed in its common commercial sense, and where two words are coupled in a taxing entry, each takes colour from the other so that the composite expression is confined to the cognate and intended class of goods.

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