TMI Blog1986 (12) TMI 363X X X X Extracts X X X X X X X X Extracts X X X X ..... les Tax Act on the value of the motor chassis which he had purchased from the registered dealer, when only wooden body was fixed on the chassis and whether the cost of chassis and body cannot be bifurcated for determining the taxable sales? 2.. The assessee is a forest contractor and deals in timber, firewood and charcoal. He is a registered dealer under the Act. The assessee purchased a truck chassis for an amount of Rs. 52,000 inclusive of sales tax from the registered dealer M/s. Bhilal Motors, Raipur, on March 17, 1970 and spent Rs. 6,255.41 for the truck wooden body. After using the truck for three years in his business, he sold the truck for an amount of Rs. 40,000. In the gross turnover as well as in the taxable turnover, the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k could not be allowed to be deducted under section 2(r)(ii) of the Act because after purchase of the chassis a body was constructed and the resultant commodity cannot, therefore, be treated as identical to the commodity which was purchased from the registered dealer. The assessee then filed an application under section 44(1) and so this reference has been made to answer the aforesaid two questions. 3.. It is not disputed by the learned counsel for the parties that both the questions are now covered by the decisions of this Court. This Court in Commissioner of Sales Tax v. Project Automobiles [1978] 42 STC 279 held as under: "Under the enlarged definition of the word 'business' in section 2(bb) of the Madhya Pradesh General Sales Tax Ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the petitioner was that the goods sold were purchased from registered dealers and the sales of these goods after they were used are also exempted under section 2(r)(ii) of the Act. The contention was rejected by the sales tax authority on the ground that after the goods were used, they ceased to be the same goods which were purchased from the registered dealers and, therefore, the exemption contained in section 2(r)(ii) did not apply. On a petition: Held, that the goods do not lose their identity simply because after purchase, they are used by the petitioner in the course of his business. Tyres even after they were used and ceased to be serviceable remained tyres. Similar is the case with other goods, namely, spare parts and mobil oil. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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