Commercial parlance and functional identity controlled classification of push buttons as switches, defeating exemption denial.

Goods described as actuators or push buttons were treated as switches for exemption purposes because the classification list identified them as electrical push buttons, the Explanatory Notes covered push button switches as switches, and the product functioned and traded as a switch. A literal approach to commercial identity was rejected in favour of commercial parlance and functional use. On that basis, the goods fell within the switch category and were not excluded from Notification No. 160/86.

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Issues: Whether the goods described as actuators or push buttons were classifiable as switches so as to deny exemption under Notification No. 160/86.

Analysis: The goods were described in the classification list as electrical push buttons, and the relevant Explanatory Notes treated push button switches as switches. The Tribunal held that the Collector had adopted an unduly literal view of commercial identity. Since the product performed the function of a switch and was dealt with in the trade as a switch, there was no basis to exclude it from that category.

Conclusion: The goods were held to be switches in commercial parlance, and the Revenue's challenge succeeded.

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