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2010 (7) TMI 879 - HC - VAT and Sales TaxWhether "dyes" used for leather finishing falls under entry 49 of Part C or entry 16(iii) of Part E? Held that:- while "pigments" would straightaway fall under entry 16(iii). "pigments or water pigments" when used for leather finishing works would also fall under the said entry 16(iii. Certainly "dyes" which are classified as such under entry 49 of part C can be taxed only at the rate it is specified for that entry and the said classification cannot be clubbed with entry 16(iii) even if such "dyes" were used for the purpose of leather finishing works and thereby brought under entry 16(iii) of Part E. To put it differently, the "dyes" which squarely falls under entry 49 of Part C can never be classified as "pigments" and brought under entry 16(iii) merely because such "dyes" are used the process of leather finishing works. Once we come to such a definite conclusion, we have no hesitation in answering the question in favour of the assessee and consequently, the order impugned in these revision petitions cannot be sustained. The impugned orders are set aside. The tax levied initially at the rate of 5% alone would survive. Any levy of tax over and above 5% is hereby set aside.
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