Common parlance test treats neck-ties as ready-made garments because they are sold finished for immediate use.

Neck-ties are treated as ready-made garments under the Madhya Pradesh General Sales Tax Act when viewed in their ordinary and commercial sense. Applying the common parlance test, the article's finished condition, immediate usability, and sale without tailoring or stitching to individual measure were decisive. On that basis, neck-ties were held to fall within entry 26, Part IV of Schedule II, because they are worn as articles of dress or adornment in ready-to-use form. The note states that the reference was answered in favour of the assessee, with the appeal left for final disposal before the appropriate Division Bench.

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Issues: Whether neck-ties fall within entry 26, Part IV of Schedule II of the Madhya Pradesh General Sales Tax Act, 1958 as ready-made garments.

Analysis: The term "ready-made garment" was construed in its ordinary and commercial sense, aided by dictionary meanings and the manner in which the article is manufactured, sold, and used. Neck-ties are sold ready for immediate use, are not tailored or stitched to individual measurements, and are conventionally worn as an article of dress or adornment. Applying the common parlance approach, the decisive feature was that the article is available in finished form for immediate use without further processing.

Conclusion: Neck-ties are ready-made garments and fall within entry 26, Part IV of Schedule II. The reference was answered in favour of the assessee.

Final Conclusion: The referred question was conclusively answered by classifying neck-ties as ready-made garments for sales tax purposes, while the appeal itself was left for final disposal before the appropriate Division Bench.

Ratio Decidendi: An article is a ready-made garment if, in common trade and consumer understanding, it is sold in finished form for immediate use as an article of dress or adornment without tailoring or stitching to individual measure.

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