TaxTMI Login
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →Just a moment...
AI OCR ✕Convert scanned orders, printed notices, PDFs and images into clean, searchable, editable text within seconds. Starting at 2 Credits/page
Try Now →
Press 'Enter' to add multiple search terms. Rules for Better Search
Use comma for multiple locations.
---------------- For section wise search only -----------------
Accuracy Level ~ 90%
of 
Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
No Folders have been created
Are you sure you want to delete "My most important" ?
NOTE:
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
of Press 'Enter' after typing page number.
of Press 'Enter' after typing page number.
All Case Laws
Note
Bookmark
Share
Don't have an account? Register Here
of Press 'Enter' after typing page number.
Issues: Whether the conversion of wet blue leather into finished leather amounts to manufacture so as to justify purchase of chemicals under Form XVII at concessional rate under section 3(3) of the Tamil Nadu General Sales Tax Act, 1959, and whether penalty under section 23 was leviable.
Analysis: The conversion process was held to bring about a real change in the character, identity and marketability of the goods. Wet blue leather, after undergoing the relevant stages, ceases to retain its original identity and becomes finished leather, which is a different commercial commodity. The Court followed its earlier binding decision on the same question and held that the factual position in the present case was squarely covered. Once the activity was treated as manufacture, the use of Form XVII declarations for the declared manufacturing purpose remained proper, and the foundation for penalty based on alleged misuse of the declarations did not survive.
Conclusion: The conversion of wet blue leather into finished leather amounts to manufacture, the assessee was entitled to the concessional rate of tax under section 3(3), and penalty under section 23 was not leviable. The revision was therefore dismissed in favour of the Revenue.
Ratio Decidendi: A process amounts to manufacture when it results in a transformation that gives the goods a new identity as a distinct commercial commodity.
TaxTMI 
TaxTMI 
