Civil Appeal No 2212 of 1977
Appeal by Special Leave from the Judgment and Order dated 11 5 19 of the Punjab and Haryana High Court in General Sales Tax Reference No 1674
A K Sen A R Lal and Ashok Grover for the Appellant
J D Jain and M N Shroff for the Respondent
The Judgment of the Court was delivered by 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 textiles 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 dryer 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 dryer 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 1 1948 and therefore not exempt from sales tax both under the Punjab General Sales Tax Act l948 and the Ccntral Sales Tax Act 1956
 547 The Reference was heard by 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 dryer 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 h 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
It is clear from section 5 sub section 1 of the Act that it levies sales tax on the taxable turnover of a dealer subject to the provisions of the Act
Sub section 2 of section S defines taxable turnover mean that part of a dealer s 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 any 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 folloing 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 assesee fell within this category of goods so as to be exempt from sales tax  Can it be said that dryer felts  constitute 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 
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 Ramavatar Budhaiprasad vs Assistant Sales Tax officer Akola1 and Ms Motipur Jamindary Co Ltd vs State of Bihar 2 and the State of West Bengal v Washi Ahmed3 1 A T K 2 A I R 3  548 that in a taxing statute words of every day use must be construed not in thier scientific or technical sense but as understood in common parlance
The question which arose in Ramavatar s case supra was whether betel leaves are vegetables and this Court held that they are not irekldel within that term
This Court chuoted with approval the following passage from the judgment of the High Court of Madhya Pra desh in Madhya Pradesh Pan Merchant s Association Santard Market Nagpur vs State of Madllya Pradeh1 In our opinion the word vegetables   cannot be given the con lprehellsive mcaning the term bears in natural nistory and has not been given that meaning in taxing statutes beC fore The term vegetables  is to be understood as com monly understood denoting thosc classes of vegetable matter which are grown in kitchen gardens and are used for thc table And observed that the word vegetables  in taxing statutes is to be understood as in common parlance ie denoting class of vegetabies which are grown in a kitchen garden or in a farm and are used for the table
 This meaning of the worc vegetables  was reiterated in Ms Motipur Jamindary case where sugarcane was held not to fall witbin Lhe definition of the word vegetables  ancl the same mcaning was given to the word vegetables in Washi Ahmed s case supra where greerl ginger was helcl to be vegetables  within thc meaning of that word as used in common parlance
lt was pointed out by this Court in Washi Ahmed s case supIa that the sarne principle of construction in elation to words used in a taxing statute has also been adopted in English Canadiall and Americar Courls
Pollock B pointed out in Gretfell vs 1
R co
that if a statutc contains language which is capable of being construed in a p3pular sense such a statute is to tbe construed according to the strict or technical meaning of the laaguage contained in it but is to be construed in its popular sense meaning of eourse by the worls popular sense that which people conversant with the subject matter  wtl
wh ich the statute is dealing
would attribute it So also the Supreme Court of Canada said Planters Nut and Chocolate Co Ltd vs The King3 while interpreting the words fruits  and vegetables  in the Excise Act
 They are ordinary words in every day use and are therefore to be construed according to their popular sense
The same rule was expressed in slightly different language by Story J in 200 Chests of Tea4 where the learned Judge said that the parti 1 7 section T C 99 at 102
2 1876 I E D 242 at 248
3 4 1824 9 Wheaton US 430 at 438
549 cular words used by the Legislature in the denomination of articles are to be understood according to the common commercial understanding of the terms used and not in their scientific or technical sense for the Legislature does not suppose our merchants to be naturalists or geologists or botanists
 There call therefore be no doubt that the word textiles  in Item 30 of Schedule B  must be interpreted according to its popular sense meaning that scene which people conversant with the subject matter with which the statute is dealing would attribute to it
There we are in complete Agreement with the Judges who held in favour of the Revenue and against the assessee
But the question is What result does the application of this test yield  Are dryer felts  not textiles  within the ordinary accepted meaning of that word  the word textiles is derived from the Latin texere  which means to weave  and it means any woven fabric
When yarn whether cotton silk woollen rayon nylon or of any other description as made out of any other material is woven into a fabric what comes into being is a textile  and it is known as such
It may be cotton textile silk textile woollen textile rayon textile nylon textile or any other hind of textile
The method of weaving adopted may be the warp and woof pattern as is generally the case in most of the textiles or it may be any other process or technique
There is such phenomenal advance in science and technology so wondrous i the variety of fabrics manufactured from materials hithereto unknown or unthought of and so many are the new techniques invented for making fabric out of yarn that it would be most unwise to confine the weaving process to the warp and woof pattern
Whatever be the mode of weaving employed woven fabric would be textiles 
What is necessary is no more than weaving of yarn and weaving would mean binding or putting together by some process so as to form a fabric
Moreover a textile need not be of any particular size or strength or weight
It may be in small pieces or in big rolls it may be weak or strong light or heavy bleach or dyed according to the requirement of the purchaser
The use to which it may be put is also immaterial and does not bear on its character as a textile
It may be used for making wearing apparel or it may be used as a covering or bedsheet or it may be used as tapestry or upholstery or as duster for cleaning or as towel for drying the body
A textile may have diverse uses and it is not the use which determines its character as textile
It is therefore no argument against the assessee that dryer felts  are used only as absorbents of moisture in the process of manufacture in a paper manufacturing unit That cannot militate against dryer felts  falling within the category of textiles  if otherwise they satisfy the description of textiles 
550 Now what
are dryer felts   They are of two kinds cotton dryer felts and woollen dryer felts
Both are made of yarn cotton in one case and woollen in the other
Some synthetic yarn is also used The process employed is that of weaving according to warp and woof pattern
This is how the manufacturing process is described by the assessing authority in its order dated 12th November 1971 the raw material used by 
the company is cotton and woollen yarn which they themselves manufactured from raw cotton and wool and the finished products called felts  are manufactured on power looms from cotton and woollen yarn Dryer felts  are therefore clearly woven fabrics and must be held to fall within the ordinary meaning of the word textiles 
We do not think that the word textiles  has any narrower meaning in common parlance other than the ordinary meaning given in the dictionary namely a woven fabric
There may be wide ranging varieties of woven fabric and they may go on multiplying and proliferating with new developments in science and technology and inventions of new methods materials and techniques but nonetheless they would all be textiles
The analogy of cases where the word vegetables  was held not to include betel leaves or sugar cane is wholly inappropriate
There what was disapproved by the Court was resort to the botanical meaning of the word vegetables  when that word had acquired a popular meaning which was different
It was said by Holmes J in his inimitable style A word is not a crystal transparent and unchanged it is the skin of a living Thought and may vary greatly in colour and content according to the circumstances and the time in which it is used
 Where a word has a scientific or technical meaning and also an ordinary meaning according to common parlance it is in the latter sense that in a taxing statute the word must be held to have been used unless contrary intention is clearly expressed by the Legislature
The reason is that as pointed out by Story J in 200 Chest
of Tea supra the Legislature does not suppose our merchants to be naturalists or geologists or botanists
But here the word textiles  is not sought by the assessee to be given a scientific or technical meaning in preference to its popular meaning
It has only one meaning
namely a woven fabric and that is the meaning which it bears in ordinary parlance
It is true that out minds are conditioned by old and antiquated notions of what are textiles and therefore it may sound a little strange to regard dryer felts  as textiles  But it must be remembered that the concept or textiles  is not a static concept
It has having regard to newly developing materials methods techniques and processes a continually expanding content and new kinds of fabric may be invented which may legitimately without doing any violence to the language be regarded as textiles 
Take for example rayon and nylon fabrics 551 which have now become very popular for making wearing apparel
When they first came to be made they must have been intruders in the field of textiles  because only cotton silk and woollen fabrics were till then recognized as textiles 
But today no one can dispute that rayon and nylon fabrics are textiles and can properly be described as such
We may take another example Which is nearer to the case before his
It is common knowledge that certain kinds of hats are made out of felt and though felt is not ordinarily used for making wearing  apparel can it be suggested that felt is not a textile   The character of fabric or material as textile does not depend upon the use to which it may be put
The uses of textiles in a fast developing economy are manifold and it is quite common now to find textiles  being used even for industrial purposes
If were look at the  we find in Chapter 59 occurring in section Xl of the First Schedule that there is a reference to textile fabrics and textile articles of a kind commonly used in machinery or plant  and clause 4 of that Chapter provides that this expression shall be taken to apply inter alia to woven textile felts of a kind commonly used in paper making or other machinery   
This reference in a statute which is intended to apply to imports made by the trading community clearly shows that dryer felts  which are woven textile felts of a kind commonly used in paper making machinery are regarded ill common parlance according to the sense of ordinary traders and merchants textile fabrics
We have therefore no doubt that dryer felts  are textiles  within the meaning of that expression in Item 3 of Schedule B 
We accordingly allow the appeal set aside the Judgment of the High Court and answer the question referred by the Tribunal in favour of the assessee and against the Revenue
The State will pay to the assessee costs throughout
SR Appeal allowed 


Summary:
The any felts  manufactured by the appellant assessee were held by the assessing authorities to be not textiles  within the meaning of Item 30 of Schedule B  the Punjab General Sales Tax Act 1318 and thereafter on appeal the Tribunal and on reference the High Court also confirmed this view
Allowing the appeal by special leave the Court  HELD 1 Dryer felts  are textiles  within the meaning of that expression in Item 30 of Schedule B  to the Punjab General Sales Tax Act 1948
551 E 2
In a taxing statute words of every day use must be construed not in their scientific or technical sense but as understood in common parlance meaning that sense which people conversant with the subject matter with which the statute is dealing would attribute to it 548 A F Ramavatar Budhaiprasad vs Assistant Sales Tax officer Akola AlR  Ms
Motipur Jamindary Co Ltd vs State of Bihar Al
R  State of West Bengal vs Washi Ahmed  and Madhya Pradesh Pan Merchant s Association Santara Market Nagpur vs State of Madhya Pradesh 7 STC 99 at 102 referred1 to E Gretfell vs IRC 1876 I exhibit D 242 at 248 Planters Nut and Choco Co Ltd vs The King 1951 1 DLH 385 and 200 Chests of Tea 1824 9 Wheaton US 430 at 438 quoted with approval
Where a word has a scientific or technical meaning and also an ordinary meaning according to common parlance it is in the latter sense that in a taxing statute the word must be held to have been used unless contrary intention us clearly expressed by the Legislature
The reason is that the Legislature does not suppose our merchants to be naturalists or geologists or botanists
In the instant case the word textiles  is not sought by the assessee to be given a scientific in preference to its popular meaning
It has only one meaning namenamely a woven fabric and that is the meaning or technical meaning which it bears in ordinary parlance
550 E G
The concept of textiles  is not a static concept
It has having regard to newly developing materials methods techniques and processes a continually expanding content and new kinds of fabric may be invented which may legitimately without doing any violence to the language be regarded as textiles 550 H The word textiles  is derived from Latin texere  which means to weave  and it means woven fabric
When yarn whether cotton silk
woollen rayon nylon or of any other description or made out of any other material is woven into a fabric what comes into being is a textile  and is known as such
Whatever be 546 the mode of weaving employed woven fabric would be textile 
What is necessary is no more than meaning of yarn and weaving would mean binding or putting together by some process so as to form a fabric
A textile need not be of any particular size or strength or weight
the use to which it may be put is also immaterial and does not bear on its character as a textile
The fact that the dryer felts  are used only as absorbents of moisture in the process of manufacture in a paper manufacturing unit cannot militate against dryer felts  falling within category of textiles if otherwise they satisfy the description of textiles
The refers to textile fabrics in this sense
549 C D E F G H Ramavatar Budhaiprasad vs Assistant Sales lax officer Akola  and Ms Motipur Jamindary Co Ltd vs Stale of Bihar   distinguished