Common parlance test in sales tax classification keeps VSAT outside "Satellite Receiver" and places it in the residuary entry.

In sales tax classification, a VSAT was held not to fall within the expression "Satellite Receiver" because it performs two-way communication functions and does more than receive and process satellite audio or video signals. Applying the common parlance test, the court treated market understanding as decisive and accepted the finding that dealers and consumers regard VSAT and satellite receiver as different goods. VSAT was therefore excluded from entry 75(i) and classified under the residuary entry 75(iii) for unspecified electronic goods, with the resulting fiscal treatment following that classification.

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Issues: Whether a VSAT is covered by the expression "Satellite Receiver" under entry 75(i) of the notification dated 29-1-2000, or whether it falls under the residuary entry 75(iii) for electronic goods not specified elsewhere.

Analysis: VSAT was described as a two-way satellite communication system with distinct functions, use and working from a satellite receiver. The materials on record showed that a VSAT does not merely receive audio or video signals, but also transmits and relays data, voice and video through an outdoor unit and indoor unit. The expression "Satellite Receiver" was understood as a device limited to receiving and processing satellite audio and video signals. Applying the doctrine of common parlance, the relevant test in sales tax classification, a product must be understood as it is known in the market by persons dealing in it. On that basis, the evidence indicated that dealers and consumers treat VSAT and satellite receiver as different goods, and the distinction had been accepted in the tribunal's factual findings.

Conclusion: VSAT is not a satellite receiver. It is not taxable under entry 75(i) and falls under entry 75(iii) as a residuary electronic good. The question was answered in favour of the assessee and against the Revenue.

Final Conclusion: The classification dispute was resolved by treating VSAT as a distinct electronic good outside the specific entry for satellite receivers, with the consequent fiscal treatment falling under the residuary entry.

Ratio Decidendi: In sales tax classification, goods must be construed in common parlance, and a product cannot be brought within a specific tariff entry unless it is known and understood in the market as that very item.

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