Commercial identity test makes mixed fertiliser taxable when sold as a distinct product, despite tax on inputs already paid.

A fertiliser mixture prepared by combining different fertilisers with fillers was treated as a different taxable article from its component inputs because it had a distinct commercial identity, use and properties. The decisive test was whether the product remained the same commodity in the same condition as purchased; exemption from a fresh levy was available only in that situation. The manner of mixing and any question of manufacture were held irrelevant to taxability. On that basis, the notification taxing fertilisers applied to the mixture, and the assessment and appellate orders were upheld.

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Issues: Whether the fertiliser mixture prepared by mixing different fertilisers with fillers constituted the same taxable article as the component fertilisers, so as to escape sales tax on the footing that the inputs had already suffered tax.

Analysis: The controlling principle applied was that a fertiliser mixture, though broadly falling within the description of fertilisers, is not necessarily the same article as the ingredients used to make it. The decisive test was commercial identity: the mixture had different properties, different use and was sold as a different commercial product. The manner of mixing, including whether it amounted to manufacture, was held to be irrelevant. The exemption from a fresh levy was available only where the fertiliser was sold in the same condition in which it was purchased. On that reasoning, the notification taxing fertilisers was applicable to the mixture sold by the dealer.

Conclusion: The fertiliser mixture was rightly held to be taxable and the challenge to the assessment and appellate orders failed.

Final Conclusion: The Tribunal upheld the taxability of the fertiliser mixture and declined to interfere with the orders under challenge, resulting in dismissal of the application.

Ratio Decidendi: A mixed fertiliser having a distinct commercial identity, use and properties from its component fertilisers is liable to be treated as a different taxable article, and the question of manufacture is irrelevant where the taxable commodity is sold in a changed form rather than in the same condition as purchased.

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