The meaning of words used in a law imposing a tax should be construed in the same way in which they are understood in the ordinary parlance in the area in which the law is in force.

JAGANNADHA RAO, J.

( 1 ) THIS writ appeal is directed against the judgment of the learned Single Judge dismissing W. P. No. 1445/1976.

( 2 ) THE appellant manufacturers and sells toffees, boiled sweets and other confectionery products. The question that arises in the appeal is whether lozenges fall under Item I-A (l) of the First Schedule to the Central Excises and Salt Act, 1944 (hereinafter called the Act) and attract the levy of excise duty.

( 3 ) THE appellant declared Lozenges as a non-excisable item in the classification list submitted to the Assistant Collector of Central Excise, Nellore. The Assistant Collector did not accept the said contention of the appellant and passed orders accordingly on 17-3-1973.

( 4 ) ON appeal, the Appellate Collector of Central Excise, Madras, by his order dated 16-11-1973 rejected the appeal stating that the meaning of the word Candy includes Lozenges and observing as follows :-"while admitting that the term boiled sweets utilised in the tariff description does not cover Lozenges notwithstanding that Lozenges form a distinct category, I hold that the term candy which is international usage covers various other categories such as hard candy, coated candy, also includes sugar lozenges. The book Chemical analysis - Food and Food Products by M. B. Jacob is relied on for this view. "

( 5 ) THE appellant preferred a revision and the Central Government while rejecting the same, passed an order dated 31-5-1975 holding that according to the American usage candy includes lozenges. They observed :-"government of India. . . . . . observe that it is clear from the evidence on record that the term candy is used in U. S. A. ; it includes amongst other things, a lozenge of the type under discussion of this case. The reference to the Oxford Dictionary in interpreting the term candy does not help. It refers to toffees and the like, while candy is a term specified in the relevant tariff item, besides the term toffee. The specification laid down the lozenges by the Indian Standards Institution makes no difference to the classification of the goods".

( 6 ) THE appellant then approached this court under Article 226 of the Constitution of India for the issue of a Writ of Certiorari for quashing the above order of the Central Government and for a consequential direction to the 1st respondent not to levy and collect excise duty on lozenges manufactured by the appellant and to refund the duty already collected.

( 7 ) THE learned single Judge who heard the writ petition dismissed the same and hence the writ petitioner has preferred this writ appeal.

( 8 ) IN this appeal, the learned counsel for the appellant Sri P. Venkatarama Reddi has contended that lozenges manufactured by the appellant cannot be brought under the Tariff item of candy and that the understanding of the word candy in the United States of America cannot be taken into account in deciding the meaning of that word in india for purposes of excise duty. The word lozenge has to be understood, according to the learned counsel, in the manner in which the trade in India and the Indian consumer understand. He also pointed out that the appellant has placed before the respondents the specification laid down by the Indian Standards Institution (hereinafter called the ISI) and other books which clearly show that the essential components of lozenges and candy are different and that while candies have to be manufactured by the boiling process, lozenges do not require boiling at any stage. He also relied upon a direct ruling of the Madras High Court in M/s. Parry Confectionery Limited, Madras v. Government of India - 1980 Excise law Times 468.

( 9 ) ON the other hand the learned standing counsel for the respondents contended that the word candy is comprehensive enough to include lozenges and that, in the absence of any material produced by the appellant, the liberal meaning attributed to the said word candy in the U. S. A. has to be taken into account. He also submit

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