Judgment

BHAGWATI, J:- The short question which arises for determination in this appeal is whether dryer felts manufactured by the assessee fall within the category of "all varieties of cotton, woollen or silken taxtiles" specified in Item 30 of Schedule B of the Punjab General Sales Tax Act, 1948 (hereinafter referred to as the Act). If they are covered by this description, they would be exempt from Sales Tax imposed under the provisions of the Act, otherwise they would be liable to sales tax. The assessing authorities held that the driver felts manufactured by the assessee were not textiles" within the meaning of Item 30 of Schedule B and they were, therefore, not exempt from sales tax. The Tribunal, on appeal, also took the same view and rejected the claim of the assessee to exemption from sales tax in respect of sales of driver felts. The assessee thereupon moved the Tribunal for making a reference to the High Court and on this application, the following question of law was referred by the Tribunal for the opinion of the High Court :

"Whether on the facts and circumstances of the case, the products manufactured by the petitioner are not covered by Item 30 of Schedule B of the Punjab General Sales Tax Act, 1948, and therefore, not exempt from sales tax both under the Punjab General Sales Tax Act, 1948 and the General Sales Tax Act, 1956."

The Reference was heard by a Division Bench and on a difference of opinion between the two Judges constituting the Division Bench, the Reference was placed before a third Judge. The third Judge held that driver felts were not included in the expression textiles occurring in Item 30 of Schedule B of the Act and were, therefore, not exempt from sales tax and on this view the question referred to the High Court was answered against the assessee and in favour of the Revenue. The assessee thereupon preferred the present appeal with special leave obtained from this Court.

2. It is clear from Section 5 sub-section (1) of the Act that it levys sales tax on the taxable turnover of a dealer subject to the provisions of the Act. Sub-section (2) of Section 5 defines "taxable turnover" to mean that part of a dealers gross turnover during any period which remains after deducting therefrom inter alia his turnover on the sale of goods declared tax free under Section 6. Section 6 provides that no tax should be payable on the sale of goods specified in the first column of Schedule B subject to the conditions and exception, if any, set out in the corresponding entry in the second column thereof and no dealer shall charge sales tax on the sale of goods which are declared tax-free from time to time under this Section. Schedule B sets out in the first column, various categories of goods which are declared tax-free under Section 6 and Item 30 specifies the following category of tax-free goods :

"All varieties of cotton, woollen or silken textiles including rayon, artificial silk or nylon whether manufactured by handloom or powerloom or otherwise but not including pure silk fabrics, carpets, druggets, woollen durees and cotton floor durees."

The question is : whether dryer felts manufactured by the assessee fell within the category of goods so as to be exempt from sales tax? Can it be said that dryer felts constitutes a variety of cotton or woollen textiles? The answer to the question depends on what is the true meaning of the word textiles as used in Item 30 of Schedule B.

3. Now, the word textiles is not defined in the Act, but it is well settled as a result of several decisions of this Court, of which we may mention only a few, namely, Ramavater Budhaiprasad v. Asst. Sales Tax Officer, Akola, AIR 1961 SC 1325 and M/s. Motipur Jamindarry Co. Ltd. v. State of Bihar, AIR 1962 SC 660 and State of West Bengal v. Washi Ahmed, (1977) 3 SCR 149 that in a taxing statute words of everyday use must be construed not in their scientific or technical sense but as understood in common parlance. The question which arose in Ramavate