TMI Blog2019 (12) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... 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. - Tax Case No.59 of 2019 - - - Date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd ' Blue Leather ' as per Leather Dictionary refers to moist chrome-tanned leather. In this phase, the leather is tanned, but, neither dried, dyed nor finished. The bluish colouring is produced by the chrome tanning agent (Chromium (III) Oxide), which is blue and is contained in the leather after Tanning. With the advancement of technology, the Leather is dyed through in multiple colours but, the dyes have no opacity. In the case of bright leathers, the reverse of the Finished Leather retains the blueish colour of the Chrome Tanning Agents. During retanning, the leather is bleached so that light colours can be achieved with better dying. 4. The said controversy as to whether the conversion of the wet leather into f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Retanning Syntans, vegetable extracts are added in drums and rotated for one hour for tightness and strength. Dyeing The required colour is taken and dyed for colouring. Drying The water, which is already present in the leather is removed. Staking This process involves to make leather soft and flat. Trimming The process is carried on for the neat surface area and good looking purpose. Buffing/Stuffing This process removes the dust in the backside of the leather and for uniformity on both sides. D ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ides and skins get transformed into finished leather; the other is called the wet unit; and the third is called the dry unit. It is after discussing these facts the Appellate Assistant Commissioner came to the conclusion that a manufacturing activity takes place. The Tribunal appears to have been persuaded by the fact that in item 7B of Schedule II to the Act, the two categories of leather that are mentioned in the entry are 'raw hides and skins' and 'dressed hides and skins'. The entries indicate taxability and the rate. That cannot decide the issue as to whether any manufacturing activity takes place or not. Both 'wet leather' and 'finished leather' may be described as ..... X X X X Extracts X X X X X X X X Extracts X X X X
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