Common parlance test governed exemption for Kum-Kum, bringing velvet sticker product within the notification.

The exemption for "Kum-Kum" under Notification No. 235/86 was applied by construing the term in common parlance rather than by technical classification alone. Although the product was placed under Heading 3307.90, the decisive question was whether "Velvet Sticker Kum Kum" would be understood in trade and ordinary usage as Kum-Kum. Relying on the settled rule for taxing statutes and exemption notifications, the Tribunal treated the expression broadly to cover items commonly known as Kum-Kum, including coloured powder, liquid, and similar circular stickers used by Hindu ladies. The product was therefore held to fall within the notification and qualify for exemption.

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Issues: Whether the product described as "Velvet Sticker Kum Kum" was covered by the exemption available to "Kum-Kum" under Notification No. 235/86 as amended.

Analysis: The product was treated as falling under Heading 3307.90, but the decisive question was whether it was known as "Kum Kum" in common or trade parlance. Applying the settled rule that words in a taxing statute and an exemption notification must be understood in their common parlance sense, the Tribunal relied on its earlier view that only those items commonly understood as Kum-Kum, including coloured powder, liquid, and similar circular stickers used by Hindu ladies, were covered by the notification. On that basis, the product in question was held to be within the description.

Conclusion: The product was held to be covered by the exemption notification and the finding was in favour of the assessee.

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