Purchase tax on breach of resale declaration upheld where bus bodies were only components of complete buses sold.

Form 14 could be relied on only when goods were purchased for resale, and breach of that condition attracted purchase tax under section 14 of the Bombay Sales Tax Act, 1959. The purchase order and sale invoice showed a single indivisible contract for supply of complete buses at a fixed price per bus, so the assessee did not resell the bus bodies as such. The bus bodies were only components of the completed buses sold, meaning the purchased goods and the sold goods were not the same commodity for the declaration. The declaration was therefore violated and purchase tax was rightly levied in favour of the Revenue.

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Issues: Whether the assessee contravened the declaration in form 14 by not reselling the bus bodies purchased without tax, so as to attract purchase tax under section 14 of the Bombay Sales Tax Act, 1959.

Analysis: Form 14 could be used only where the goods were purchased for resale, and on breach of that condition purchase tax became payable under section 14. The purchase order from the overseas customer and the sale invoice showed a single indivisible contract for supply of complete buses at a fixed price per bus. The assessee did not resell the bus bodies as such; the bodies were merely components of the complete buses sold. The goods purchased under the declaration and the goods sold were therefore not the same commodity for the purpose of the declaration.

Conclusion: The declaration in form 14 was violated and purchase tax under section 14 was rightly levied; the question was answered in favour of the Revenue.

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