Commercial meaning test classifies hot rolled coil and skelp in coil as strips for entry tax purposes.

Where a taxing entry uses undefined trade expressions, classification turns on the popular and commercial meaning of the goods, supported by invoices, commercial literature and standard trade references. On that basis, hot rolled coil and skelp in coil imported into the Calcutta Metropolitan Area were treated as "strips" under item 53(d)(iii) of the Schedule to the Taxes on Entry of Goods into the Calcutta Metropolitan Area Act, 1972. The argument that they were sheet in coil form was rejected because sheet is ordinarily understood as supplied in straight lengths, not in coils. Entry tax on the goods as strips was therefore upheld.

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Issues: Whether hot rolled coil and skelp in coil imported into the Calcutta Metropolitan Area were taxable as "strips" under item 53(d)(iii) of the Schedule to the Taxes on Entry of Goods into the Calcutta Metropolitan Area Act, 1972, and whether they could be treated as sheet in coil form so as to escape that classification.

Analysis: The applicable test was the popular and commercial meaning of the goods, since the Entry Tax Act did not define the expressions used. The invoices and commercial literature showed that the goods supplied from Bokaro and Durgapur were hot rolled strip and skelp in coil form. The material was described in the Bureau of Indian Standards glossary as hot rolled flat product supplied in coil form, while skelp was treated as strip. The Tribunal also found that sheet, as ordinarily understood, is supplied in straight lengths and not in coil form, so the plea that the goods were sheet in coil form was not acceptable.

Conclusion: Hot rolled coil and skelp in coil were correctly treated as strips falling under item 53(d)(iii) of the Schedule, and the levy of entry tax on that basis was upheld against the assessee.

Ratio Decidendi: Where a taxing entry uses a trade expression not defined in the statute, the goods must be classified according to their popular and commercial meaning as evidenced by material descriptions and trade standards, and a product answering that description falls within the specific taxable entry even if the assessee suggests a different nomenclature.

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