Common parlance test treats poultry feed supplements as exempt feed, not medicines, when their trade character is nutritional.

Poultry feed supplements sold under different brand names were treated as poultry feed for tax purposes because their commercial character in common parlance was nutritional and supportive, not medicinal. Applying the common parlance test, the Court held that goods used to strengthen poultry, improve nutrition, maintain health, and support production remain within the exempt poultry feed entry even if they may also help prevent disease or improve bodily functions. Literature showing nutritional use did not establish that the products were traded as medicines or drugs. The revision was allowed, and the contrary findings below were set aside.

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Issues: Whether poultry feed supplements sold under different brand names were covered by the entry for poultry feed and therefore exempt from trade tax, or were liable to be treated as medicines and taxed accordingly.

Analysis: The exemption and rate notifications under the U.P. Trade Tax Act, 1948 showed that poultry feed had been treated as an exempt item, while balanced cattle feed alone remained taxable after the 22.05.2001 amendment. The dispute turned on the true commercial character of the products. Applying the common parlance test, the Court held that items used to strengthen poultry, improve nutrition, maintain health, and support production cannot be excluded from the feed entry merely because they may also assist in preventing disease or improving bodily functions. The literature relied upon by the revenue only indicated nutritional and supportive use, not that the goods were traded as medicines or drugs. The Court relied on prior authorities recognising that vitamins, minerals, concentrates, and similar additives may form part of poultry feed and feed supplements.

Conclusion: The products were held to be poultry feed supplements covered by the exempt entry and not medicines or drugs; the revision was allowed and the contrary findings of the Tribunal and authorities below were set aside.

Ratio Decidendi: In taxing entries, the commercial understanding of the goods in common parlance governs, and poultry feed supplements that provide nutritional support or improve poultry health and production are to be treated as poultry feed unless they are shown to be medicines or drugs in trade understanding.

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