Common parlance test applied to work stations under VAT law; they were held not to be furniture for input tax restriction.

In the absence of a statutory definition, the expression "furniture" in the Karnataka VAT Act was construed in its ordinary and commercial sense using the common parlance and predominant user tests. On that approach, articles ordinarily used for convenience or decoration in a dwelling or business place may qualify as furniture, but work stations designed to house and operate computers and allied equipment are better understood as part of the work environment, not as furniture in popular understanding. Accordingly, work stations were held not to fall within Entry No. 5 of the Fifth Schedule, so the input tax restriction under Section 11(a)(2) did not apply and input tax deduction remained available.

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Issues: Whether work stations purchased by the assessee fall within the category of furniture under Entry No. 5 of the Fifth Schedule to the Karnataka Value Added Tax Act, 2003, so as to attract the input tax restriction under Section 11(a)(2) of that Act.

Analysis: The expression "furniture" was construed in its ordinary and commercial sense, because the Act did not define it. The determining factors applied were the common parlance test and the predominant or ordinary user test. On that approach, articles ordinarily used for convenience or decoration in a dwelling place or place of business answer the description of furniture, whereas a work station used to house and operate computers and allied equipment is essentially an accessory or part of the work environment and not an article of furniture in popular understanding. Since the goods were not shown to be furniture as contemplated by Entry No. 5, the input tax restriction did not apply.

Conclusion: Work stations are not furniture for the purpose of Entry No. 5 of the Fifth Schedule, and the assessee was entitled to input tax deduction; the answer was in favour of the assessee and against the revenue.

Ratio Decidendi: In the absence of a statutory definition, tariff and tax entries must be construed according to common parlance and predominant user, and an item not ordinarily understood as furniture cannot be brought within a furniture entry merely because it is capable of use in an office setting.

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