TMI Blog1980 (1) TMI 187X X X X Extracts X X X X X X X X Extracts X X X X ..... ssioner, Kancheepuram. T.C. No. 591 of 1979 has been preferred by the State against the order of the Tamil Nadu Sales Tax Appellate Tribunal (Main Bench) dated 14th December, 1978, in respect of the assessment for the year 1976-77 dealing with another assessee. W.P. Nos. 4951 and 4952 of 1978 have been filed by the same assessee praying for the issue of a writ of prohibition. The two writ petitions have been filed, one in respect of the assessment under the Tamil Nadu General Sales Tax Act and the other with reference to the assessment under the Central Sales Tax Act. The prayer in the writ petitions is for the issue of a writ of prohibition restraining the Joint Commercial Tax Officer, Mannadi (East), (impleading the State of Tamil Nadu al ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that, therefore, the same would not fall within the scope of section 14(iii) of the Central Sales Tax Act. It is this conclusion of the Board of Revenue that is challenged in the tax revision cases. As far as T.C. No. 591 of 1979 is concerned, the Sales Tax Appellate Tribunal held that coloured leather would also come within the scope of section 14(iii) of the Central Sales Tax Act and that, therefore, the turnover was liable to only single point levy. The correctness of this conclusion is challenged by the State in this tax revision case. The two writ petitions, as we already pointed out, have been filed for the issue of a writ of prohibition. Originally, the Deputy Commercial Tax Officer taxed the turnover relating to coloured skin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... imposing taxes on the sale or purchase of such goods of special importance shall be subject. Section 14 of this Act enumerates the goods which are declared as goods of special importance in inter-State trade or commerce. Section 14(iii) states as follows: "14. It is hereby declared that the following goods are of special importance in inter-State trade or commerce:...... (iii) hides and skins, whether in a raw or dressed state." Section 15 of the Act provides: "15. Every sales tax law of a State shall, in so far as it imposes or authorises the imposition of a tax on the sale or purchase of declared goods, be subject to the following restrictions and conditions, namely: (a) the tax payable under that law in respect of any sale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... kins At the point of 3 last purchase in the State. (b) Dressed hides and skins (which At the point of 1 1/2" were not subjected to tax under first sale in the this Act as raw hides and skins) State. Thus, it will be seen that once a particular commodity comes within the scope of the expression "hides and skins, whether in a raw or dressed state", immediately the restrictions imposed by section 15 of the Central Sales Tax Act, 1956, are attracted. Consequently, the question for consideration in the present case is whether leather splits and coloured skins can be said to fall within the scope of "hides and skins, whether in a raw or dressed state", as contemplated by section 14(iii) of the Central Sales Tax Act. For the purpose of conside ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... product. They are finished leather sold as coloured skins and not as dressed skins. They are commercially different and are treated and dealt with in trade circles as different products. The process of dyeing or colouring changes the commercial nature of the dressed skins. There are different patterns of dyeing and colouring. The complete piece may be dyed or coloured uniformly with a single colour or with a pattern of colours, depending upon the requirements of the prospective consumers in the market. As the dressed skins are subjected to process, first by splitting and secondly by colouring, they become different products. Pieces of coloured and dyed leather were produced before the Board at the time of hearing. Some pieces were coloured ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the split skin is coloured, it does not cease to be "hides and skins", though in a dressed state and does not become a totally different commodity. Consequently, we are clearly of the opinion that leather splits and coloured skins will come within the scope of the expression "hides and skins, whether in a raw or dressed state" under section 14(iii) of the Central Sales Tax Act and would, therefore, be liable only to single point levy as provided for in section 15 of that Act and not to multi-point levy. In view of this clear position, we allow T.C. Nos. 894 and 895 of 1977 and set aside the order of the Board of Revenue and restore the order of the Appellate Assistant Commissioner. For the same reason, T.C. No. 591 of 1979 preferred b ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
