Commercially distinct commodities rule applied where chassis and mounted body were not resold in the same form, attracting purchase tax.

Motor vehicle chassis and a body mounted on it were held to be commercially distinct commodities, even though both appeared in the same notification entry. The court applied the principle that goods listed under one tariff or exemption heading may still remain separate commercial articles at different stages of use. Because the dealer purchased chassis and bodies separately and did not resell them in the same form and condition, the statutory condition for exemption on resale was not met. Purchase tax was therefore attracted under section 3-AAAA.

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Issues: Whether motor vehicle chassis and a motor vehicle with body mounted on it are commercially the same commodity for purposes of purchase tax, and whether the assessee's failure to resell the goods in the same form and condition attracted liability under the relevant sales tax provisions.

Analysis: The Tribunal had treated the mounted body on chassis as falling within the notification covering motor vehicles, chassis and bodies meant for mounting on chassis. The revisionary court held that inclusion of chassis and bodies in the same entry does not make them one commercial commodity. It applied the principle that the same article at different stages may be commercially different, and that articles mentioned under the same heading may still be distinct commodities. Since the dealer purchased chassis and body separately by issuing form III-A and did not resell them in the same form and condition, the statutory condition for exemption from purchase tax was not satisfied.

Conclusion: The chassis and the mounted motor vehicle body were not commercially the same commodity, and purchase tax under section 3-AAAA was attracted.

Ratio Decidendi: Goods mentioned in the same tariff or notification entry may nonetheless be commercially different commodities, and where goods purchased on a resale-in-same-form basis are not resold in that form and condition, purchase tax liability arises.

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