Commercial identity of timber retained after sizing into planks and shooks, defeating tax under section 7-A(1)(a).

Liability under section 7-A(1)(a) of the Tamil Nadu General Sales Tax Act, 1959 arose only if purchased goods were consumed or used in the manufacture of other goods for sale. The Tribunal found that the assessee did not manufacture packing cases from cut-end timber; it merely sized the wood into planks and shooks for use in packing cases. On that factual basis, the planks and shooks retained the commercial identity of timber and did not become a different commercial product. The revisional court could not disturb that finding because it was supported by the record and was not perverse, so the turnover was not taxable under section 7-A(1)(a).

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Issues: Whether the purchase turnover of cut-end timber sized into planks and shooks for use in packing cases was liable to tax under section 7-A(1)(a) of the Tamil Nadu General Sales Tax Act, 1959.

Analysis: Liability under section 7-A(1)(a) arises only where purchased goods are consumed or used in the manufacture of other goods for sale. The finding recorded by the Tribunal was that the assessee did not manufacture packing cases from the purchased cut-end woods, but only sized them into planks and shooks and sold them for use in packing cases. On that factual basis, the sized planks and shooks continued to retain the commercial identity of timber and did not become a different commercial product. The revisional court could not disturb that factual finding, as it was supported by the material on record and was not shown to be perverse.

Conclusion: The turnover of Rs. 3,03,563 was not liable to tax under section 7-A(1)(a) of the Tamil Nadu General Sales Tax Act, 1959, and the revision failed.

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