Common parlance interpretation of tax exemptions: camellia tea seeds qualified as flower seeds and were exempt from tax.

Camellia tea seeds were treated as flower seeds within Entry No. 37 of Schedule I to the West Bengal Sales Tax Act, 1994 because the term "flower seeds" was undefined and had to be read in common parlance. The tribunal reasoned that seeds sold for growing flower plants retained that character even though camellia plants may also be used in tea production. It further held that later insertion of tea seed in another entry could not narrow a clear exemption by implication, and the interpretation favouring the dealer had to prevail. The revisional order was therefore set aside and the seeds were exempt from tax.

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Issues: Whether camellia tea seeds were flower seeds covered by Entry No. 37 of Schedule I to the West Bengal Sales Tax Act, 1994 and therefore exempt from tax.

Analysis: The term "flower seeds" was not defined in the Act, so it had to be understood in common parlance or commercial parlance. The entry itself exempted seed for growing flower plants. The dealer cultivated camellia flower plants and sold the seeds obtained from them for growing flower plants, not for tea manufacture. The contrasting use of tea-garden camellia plants for producing tea leaves did not change the character of the seeds sold by the dealer. The later insertion of tea seed in Entry No. 96 did not justify narrowing the scope of Entry No. 37 where the earlier entry was clear. In a taxing statute, nothing can be added by implication, and where two views are possible, the one favouring the dealer must prevail.

Conclusion: Camellia tea seeds fell within Entry No. 37 of Schedule I and were exempt from tax; the revisional order was liable to be set aside.

Ratio Decidendi: In the absence of a statutory definition, an entry in a taxing statute must be construed in common parlance, and a commodity that is in substance seed for growing flower plants cannot be excluded from exemption by implication or by reference to later legislation.

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