Common parlance test for textiles: woven yarn labels sold in rolls retain textile character under sales tax law.

Labels manufactured from yarn and sold in rolls were held to be textiles for purposes of Entry No. 14 of Schedule B to the Haryana General Sales Tax Act, 1973. The governing test was the popular or common parlance meaning of textile, focusing on whether the goods are understood in the market as woven fabric. Because the labels were woven from yarn and their essential character was not altered by sale in rolls, use in a particular trade, or cutting to size, they retained textile character. The issue was therefore answered in favour of the assessee and against the Revenue.

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Issues: Whether labels manufactured out of yarn and sold in rolls are textiles covered by Entry No. 14 of Schedule B to the Haryana General Sales Tax Act, 1973.

Analysis: The governing approach to an exemption entry for textiles is its popular or common parlance meaning, namely whether the goods are understood in the market as woven fabric. Authorities relied upon by the Court consistently treat woven material as textile, and mere use in a particular trade or subsequent cutting to size does not alter its character if the essential nature remains that of woven fabric. On the facts, the labels were woven from yarn, were sold in rolls, and did not owe their identity to printing or any process that destroyed their character as a textile.

Conclusion: Labels are textiles and fall within Entry No. 14 of Schedule B. The question is answered in favour of the assessee and against the Revenue.

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