https://www.taxtmi.com/caselaws?id=149785 In construing the taxing entry for "tobacco products," the HC applied the common parlance or commercial sense test rather than a narrow technical definition. A commodity is to be judged by how consumers and sellers understand its character, and mitha gundi was treated as an article valued for its tobacco content by a distinct class of consumers despite containing only a small percentage of tobacco. The Court also reiterated that ambiguity in a taxing statute must be resolved in favour of the subject, and found no meaningful distinction between "tobacco preparations" and "tobacco products" absent a clear definition. Mitha gundi was accordingly held to be a tobacco product and not liable to tax under the notification. en-us Thu, 12 Mar 1970 00:00:00 +0530 Fri, 03 May 2013 14:59:12 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=149785 In construing the taxing entry for "tobacco products," the HC applied the common parlance or commercial sense test rather than a narrow technical definition. A commodity is to be judged by how consumers and sellers understand its character, and mitha gundi was treated as an article valued for its tobacco content by a distinct class of consumers despite containing only a small percentage of tobacco. The Court also reiterated that ambiguity in a taxing statute must be resolved in favour of the subject, and found no meaningful distinction between "tobacco preparations" and "tobacco products" absent a clear definition. Mitha gundi was accordingly held to be a tobacco product and not liable to tax under the notification. Case-Laws VAT and Sales Tax Thu, 12 Mar 1970 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=149785