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2019 (12) TMI 886 - HC - VAT and Sales TaxProcess amounting to manufacture or not - processing of Blue Leather into Finished Leather by undertaking the various processes to complete the same into Finished Leather - benefit of concessional rate of tax - Section 3(3) of the TNGST Act - HELD THAT:- The said controversy as to whether the conversion of the wet leather into finished leather came into consideration in the case of Golden Leathers vs. Secretary, Tamilnadu Sales Tax Appellate Tribunal [2010 (4) TMI 535 - MADRAS HIGH COURT], wherein discussing the Tanning process undertaken by the manufacturing unit of the leather industry, a Division Bench of this Court concluded that conversion of Wet Leather into Finished Leather amounted to 'manufacture' and therefore, the concessional rate of tax under section 3 was available to such manufacturer. There is no doubt that the Tribunal was justified in allowing the Appeal of the Assessee and holding that the the process of conversion of Wet Blue Leather into Finished Leather amounts to 'manufacture' within the meaning of Section 3 and therefore there was no misuse of declaration in Form 17 by the Assessee while purchasing chemicals for processing the leather and therefore, the Assessee was not liable to pay higher rate of tax on such purchase of materials. Revision petition dismissed - decided against Revenue.
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