Common parlance test classifies processed Isabgol Husk as medicine, not kirana goods, for sales tax purposes.

Isabgol Husk, after processing, was treated as a separate commercial product whose classification depended on its ordinary and trade understanding. Applying the common parlance and trade parlance tests, the Court held that its primary use as a laxative for constipation and stomach disorders gave it a curative and therapeutic character recognised in the Pharmacopoeia of India. As the sales tax law did not define "medicine," the meaning under the Drugs and Cosmetics Act, 1940 was relevant, and the product satisfied that description. It was therefore classified as a medicine taxable at 3%, not as kirana goods taxable at 12%.

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Issues: Whether Isabgol Husk is to be classified as a medicine taxable at 3% or as kirana goods taxable at 12% under the M.P. General Sales Tax Act, 1958.

Analysis: Isabgol was treated in the trade notice and notification as a kirana item, but the decisive question was the character of Sat. Isabgol Husk after processing. The Court applied the common parlance and trade parlance tests to determine the article by its ordinary use and commercial understanding. It noted that Isabgol Husk is a separate processed product, commonly used as a laxative for constipation and stomach disorders, and that its medicinal function is recognized in the Pharmacopoeia of India. Since the sales tax law did not define medicine, the meaning under the Drugs and Cosmetics Act, 1940 was relevant, and the item satisfied the description of a drug or medicine by its curative and therapeutic use.

Conclusion: Isabgol Husk is a medicine and is taxable at 3% under Entry 16 of Part IV of Schedule II, not as kirana goods under Entry 13 of Part VI of Schedule II.

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