Commercially distinct timber products attract purchase tax when logs are processed into planks and scantlings, but not by mere transport sizing.

Timber logs are treated as consumed in the manufacture of other goods, and purchase tax arises, where processing results in a commercially new and distinct article. Mere sawing, cutting or sizing does not by itself determine tax liability; the controlling test is whether the original timber continues as the same commercial commodity or loses its identity. On that basis, planks and scantlings are commercially different from timber logs and attract purchase tax, while logs cut only into transport or stacking sizes do not necessarily become a new commodity merely because of that cut.

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Issues: Whether timber logs converted into sizes, planks and scantlings are consumed in the manufacture of other goods so as to attract purchase tax under section 5A(1)(a) of the Kerala General Sales Tax Act, 1963.

Analysis: The relevant test is whether, after treatment or processing, the goods continue to remain the same commercial article or whether a commercially new and different article emerges. Mere sawing, cutting or sizing of timber logs involves use up of the logs, but tax liability arises only if the resulting product is commercially distinct from the original logs. On that test, planks and scantlings are commercially different from timber logs, because they are bought and sold as distinct articles. Sizes cut merely for transport or stacking do not necessarily create a new commercial commodity, but beams, sleepers and similar sized timber do.

Conclusion: Timber logs converted into planks and scantlings are consumed in the manufacture of other goods and attract purchase tax. Timber logs merely cut into transport sizes do not, by that fact alone, become different commercial goods.

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