Commercial parlance test applied to tin sheets converted into tin containers, attracting tax on purchase used in manufacture.

Section 7-A of the Tamil Nadu General Sales Tax Act, 1959 applied where purchased goods were consumed in manufacturing another commercially distinct commodity for sale or otherwise. Applying the commercial parlance test, the court found that tin sheets, after welding and use of charcoal and lead, lost their identity and became tin containers, which are distinct articles in trade. The tin sheets were therefore consumed in the manufacture of a different commodity, attracting section 7-A. The Tribunal's contrary view was held to be wrong, and the Revenue's revision succeeded.

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Issues: Whether tin sheets purchased by the assessee could be brought to tax under section 7-A of the Tamil Nadu General Sales Tax Act, 1959 on the footing that they were consumed in the manufacture of tin containers.

Analysis: Section 7-A applies where goods purchased are consumed in the manufacture of other goods for sale or otherwise. The decisive test is whether the commodity produced is commercially regarded as distinct in identity from the commodity used in its manufacture. Tin sheets, after the manufacturing process involving welding and the use of charcoal and lead, resulted in tin containers which are commercially different and distinct articles. On the accepted commercial parlance test, tin sheets do not retain the same identity as tin containers.

Conclusion: The tin sheets were consumed in the manufacture of a distinct commodity and section 7-A was attracted. The Tribunal was wrong in holding otherwise, and the Revenue's revision succeeded.

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