Timber retains its identity after cutting into rafters, beams and planks; no purchase tax liability arises on that basis.

Purchase tax under section 5A(1)(a) arises only where the purchased goods are consumed in the manufacture of another commercial commodity. Timber logs cut into rafters, beams, planks and similar forms were held not to lose their essential identity as timber, because mere sawing, shaping or flattening does not create a different article. On that reasoning, conversion of logs into these sizes did not amount to manufacture of a distinct commodity, and no purchase tax liability arose on the facts found.

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Issues: Whether timber logs, when cut into rafters, beams, planks and similar sizes, become articles different from timber logs so as to attract purchase tax under section 5A(1)(a) of the Kerala General Sales Tax Act, 1963.

Analysis: Liability under section 5A(1)(a) arises only if the purchased goods are consumed in the manufacture of other goods for sale or otherwise. The Court applied the principle that rafters, beams and planks are not commercially different from timber logs, following the Supreme Court's view that such forms remain timber and do not lose their essential identity merely because they are sawn, shaped or flattened. On that basis, cutting logs into rafters, planks and beams does not amount to consumption in the manufacture of a different commodity.

Conclusion: Timber logs cut into rafters, beams, planks and similar forms are not articles different from timber logs, and section 5A(1)(a) is not attracted. The finding is in favour of the assessee.

Final Conclusion: The revision failed because the converted timber retained its identity as timber, with the result that no purchase tax liability arose on the facts found.

Ratio Decidendi: Goods do not attract purchase tax under section 5A(1)(a) unless the process produces a different commercial commodity; mere cutting or shaping of timber logs into rafters, beams or planks does not create such a distinct commodity.

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