Common parlance test for tax classification excludes sunglasses from the spectacles entry and applies the residuary rate.

In taxing statutes, classification follows common parlance and trade understanding unless the legislation shows a contrary intention. Applying that approach, the Rajasthan HC treated Entry 125 of Schedule IV as covering corrective eyewear such as spectacles, frames, lenses, contact lenses and lens cleaners, not sunglasses, which are ordinarily used for protection from sunlight and glare. The entry's history and trade parlance supported a separate commercial identity for sunglasses. As the goods were not covered by the specific entry, the residuary entry in Schedule V applied, and the concurrent classification finding was upheld against the assessee.

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Issues: Whether sunglasses are classifiable under Entry 125 of Schedule IV of the Rajasthan Value Added Tax Act, 2003 as spectacles, parts and components thereof, contact lens and lens cleaner, or fall under the residuary entry in Schedule V, and whether the concurrent finding on tax liability called for interference.

Analysis: The relevant entry in Schedule IV was construed in its ordinary and trade meaning. The Court held that, in taxing statutes, classification must ordinarily follow common parlance unless the statute indicates a contrary intention. The dictionary meanings relied upon by the assessee showed that spectacles are primarily understood as aids to vision or devices to correct defects of vision, whereas sunglasses are ordinarily used for protection from sunlight and glare. The history of the entry, beginning with spectacles, frames and lenses and later expanding to include corrective items such as contact lens and lens cleaner, supported the view that the entry was aimed at corrective eyewear and not protective eyewear. The Court also accepted the factual finding that, in trade parlance, sunglasses and spectacles are distinct products known and used differently. The residuary entry was therefore attracted because the goods were not covered by Entry 125.

Conclusion: Sunglasses do not fall within Entry 125 of Schedule IV and are taxable under the residuary entry in Schedule V. The challenge to the concurrent classification finding failed and was against the assessee.

Final Conclusion: The revision petitions failed on the classification question, and the tax treatment of sunglasses at the residuary rate was upheld.

Ratio Decidendi: In the absence of a statutory definition to the contrary, entries in taxing statutes must be construed according to common parlance and trade understanding, and a specific entry for spectacles does not extend to sunglasses where the ordinary meaning and legislative context show a separate commercial identity.

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