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TMI Blog2019 (12) TMI 886X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 purch ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -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 finished leather came into consideration in the case of Golden Leathers vs. Secretary, Tamilna ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oft 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. Dedusting Process is carried on for the purpose of smooth surface on both sides. Finishing The process is for fixing the colour in the grain surface. We have to consider whether this activity will amount to manufacture. So, we seek help from the various rulings of the Courts. ... ... 15. In the present case, it is very clear from the facts before us that if a person placed an order for finished leather, wet blue leather will not be supplied to them. The same observations are made by the Supreme Court in the decision reported in (19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r' and 'finished leather' may be described as dressed hides and skins that is opposed to raw hides and skins . But we must still examine whether, when the wet blue takes through the various stages, a manufacturing activity takes place. The change or series of changes take the wet blue to a point where it can no longer be regarded as wet blue but must be recognized as finished leather, so there is a manufacture . This question must be decided on the facts and circumstances of each case that comes up for consideration, the processes that the particular goods pass through and whether they get converted or not and whether the inputs are used for such activity. In this case, we are satisfied that the activity amounts to a manufacturi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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