rate of tax on finish leather

[Jasbir Uppal]

Dated:- 20^th Aug.2012

Dear Sir,

That the purchase and sale of leather we are charging and paid  vat  @ 4% because the entry of leather is covered under section 14 of Central Sales tax act 1956 read as follows:-

14. Certain goods to be of special importance in inter-State trade or commerce-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;

But after the order of hon,ble Allahabad high court order in Sales/Trade tax revision no. 1286/2009 decided on 25.07.2012 held that dressed leather is different from finished leather

please clarify the rate of tax now applicable on finished leather after this order.

 

With regard

J.S. Uppal 

AI Summary

Court Ruling Suggests Finished Leather May Face Higher VAT Rate Under UPVAT Act, Distinguishing It from Dressed Leather. A query was raised regarding the applicable tax rate on finished leather following a decision by the Allahabad High Court, which distinguished dressed leather from finished leather. The initial understanding was that leather, as per Section 14 of the Central Sales Tax Act 1956, was subject to a 4% VAT rate due to its classification as a good of special importance in inter-State commerce. However, after the court's decision, it was suggested that finished leather might fall under the residuary list, potentially subjecting it to the peak VAT rate under the UPVAT Act, 2008.