Commercially distinct commodity test applied to refined used mobil-oil, making the reusable product liable to sales tax.

Refining used mobil-oil into reusable mobil-oil amounted to manufacture where the process produced a commercially distinct commodity. The nature of the process, whether mechanical, chemical, or otherwise, was not material once the end product differed commercially from the input waste oil. On the facts, refining and adding chemicals transformed used mobil-oil into reusable mobil-oil, so the product was liable to sales tax on sale.

---

---

Issues: Whether refining used mobil-oil into reusable mobil-oil amounted to manufacture so as to render the product liable to sales tax.

Analysis: The decisive test was whether the processing resulted in a commercially different commodity. The nature of the process, whether mechanical, chemical, or otherwise, was not material if the end product became commercially distinct from the original used oil. On the facts, the petitioner produced reusable mobil-oil from used or waste mobil-oil by refining it and adding chemicals, and the resulting product was held to be commercially different from the input commodity.

Conclusion: The activity amounted to manufacture, and the reusable mobil-oil was liable to tax on sale. The issue was decided against the petitioner.

---