The judgment establishes the principle that the interpretation of terms in tax laws should be based on plain language and common understanding, and not solely on technical or scientific viewpoints.

VIMADALAL, J. - These are references under section 34 of the Bombay Sales Tax Act, 1953, by the applicants who are the manufacturers of a commodity called the Ramtirth Brahmi Oil. Each of these three references relates to a different year, but the question which has been referred to us in the three references is identical, and we must, therefore, proceed to dispose them of by a common judgment. That question is as follows :-

"Whether on the facts and in the circumstances of the case, the Tribunal is justified in law in coming to the conclusion that the Ramtirth Brahmi Oil is a perfumed oil ?"

The Sales Tax Authorities have purported to tax the oil in question under entry 39 of Schedule B to the Bombay Sales Tax Act, 1953, which is in the following terms :-

"39. Toilet articles except such articles as may be specified by the State Government by notification in the Official Gazette."

As the Court is concerned in the present references with the period between the 1st of April, 1954, and the 31st of March, 1957, it is common ground that the relevant notification for purposes of the present references is the one dated 19th November, 1954, which is in the following terms :

"No. STA. 1054-XII - In pursuance of the provisions of entry 39 of Schedule B to the Bombay Sales Tax Act, 1953 (Bom. 3 of 1953), and in supersession of Government Notifications ............ the Government of Bombay is pleased to specify the following articles for the purposes of the said entry 39, namely :-

1. Oils for toilet use except perfumed oils;

2. ..........."

The position, therefore, is that, by virtue of the said notification read with the said entry 39, all oils for toilet use are exempt from taxation under the said entry 39, unless they fall within the category of "perfumed oils". According to the applicants the Ramtirth Brahmi Oil is not a perfumed oil, and, therefore, does not fall within the said entry 39 read with the said notification dated 19th November, 1954, but falls under the residuary entry 80 in Schedule B to the Bombay Sales Tax Act, 1953, which would attract a lower rate of sales tax. It is conceded by the applicants that the Ramtirth Brahmi Oil is a toilet article, but what they dispute is that it is a "perfumed oil". Mr. Patel has, in that connection, referred us, in the first instance, to the advertisements which were produced before the taxing authorities, but we are afraid, the mode in which a person may choose to advertise his commodity cannot be decisive in determining its real nature. Mr. Patel has next relied upon the Test Report obtained by his clients from the Industrial Research Laboratories which is a Government Institution. From the said Test Report it appears that two tests were carried out on the sample of Ramtirth Brahmi Oil which was submitted for analysis to the said laboratories. One was the steaming and distillation test, and the other was the alcoholic test, and the result of both those tests was stated in the said report as being that the Ramtirth Brahmi Oil did "not contain any added perfume or compound with pleasant odour". Mr. Banaji has, however, contended, on the strength of two authorities which were cited by him, one of the Madhya Pradesh High Court in Commissioner of Sales Tax, Madhya Pradesh, Indore v. Shri Sadhna Aushadhalaya ([1963] 14 S.T.C. 813) and the other of the Supreme Court in Ramavatar Budhaiprasad v. Assistant Sales Tax Officer, Akola, and Another ([1961] 12 S.T.C. 286 at p. 288), that items in the Sales Tax Act must be construed not in any technical sense, nor from any scientific point of view, but as understood in common parlance. We do not think it necessary to refer to those authorities, as, in our opinion, whichever way the question is considered, whether on the basis of the said Test Report, or from the point of view of common parlance, it must be held that the Ramtirth Brahmi Oil is not "perfumed oil" within the terms of the said notification dated 19th November, 1954. The word "