Commercial sense test excludes amusement rides from sport goods classification under the tax notification.

Amusement rides, swings and jhoola manufactured for amusement parks were held not to fall within Entry No. 32 treating goods as indoor or outdoor games or sports. Applying the popular or commercial sense of the notification, the court noted that such goods ordinarily involve fixed rules, skill, competition, or development of mental or physical faculties, whereas amusement equipment is meant for recreation and entertainment. The earlier precedent on amusement park apparatus was followed. The result was denial of the concessional rate of tax and application of the higher rate for unclassified goods.

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Issues: Whether amusement rides, swings and jhoola manufactured and sold for amusement parks fall within Entry No. 32 of Notification No. KA. NI-2-306/XI-9(113)/99-U.P. Act-15-48- Order-(8)-2000 dated 29.01.2001 as goods for indoor or outdoor games or sports and are taxable at the concessional rate.

Analysis: The decisive test applied was the popular or commercial sense of the entry. Goods covered by the notification are those used as indoor or outdoor games or sports, which ordinarily involve fixed rules, skill, competition, or development of mental or physical faculties. Amusement rides, swings and jhoola are meant for recreation and entertainment and do not answer that description. The earlier decision relied upon had already held that apparatus and goods meant for amusement parks do not fall within sport goods under the same notification.

Conclusion: The amusement rides, swings and jhoola do not fall within Entry No. 32 and are not entitled to the concessional rate of tax; the higher rate applicable to unclassified goods is attracted.

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