2019 (12) TMI 886

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....essed the Blue Leather into Finished Leather by undertaking the various processes to complete the same into Finished Leather and therefore, the Assessee was not liable for any misuse of Declaration against which the raw material in question was purchased by the Assessee to undertake the various processes of manufacture. 2. Section 3(3) of the TNGST Act mandates that notwithstanding anything contained in sub-section 2, 2(a) or 2(c), the tax payable by all the dealers shall be liable to tax @ 3% unless the goods purchased against the Declaration under the said provisions are used in connection with manufacturing goods inside the State for sale by him. If the conditions of manufacture within the State is not satisfied, the concessional r....

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....mentioned above have been explained by the respondents in their written statements filed before the Tribunal, which are as follows : Splitting & Shaving The leather is shaven in the back side for having even thickness. Washing Watered and wetting agent is added and drumming is done and the process is carried for 15 minutes and thereafter, it is again washed for removal of dust and stains. Rechroming Water, basic chrome sulphate, and cationic fatliquor are added in drum and run for 3 hours for strength. Neutralization Water, sodum formate, sodium acetate, sodium sulphide and soda bi carbonate are added in drum for increase in PH value for intake of chemicals for one hour....

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....ntity in the market and in the industry concerned. Therefore, we find that the activity satisfies all the propositions laid down by the Supreme Court to decide as to whether a process is a manufacture or not. The Tribunal did not take note of the factual finding of the Appellate Assistant Commissioner, who had not only referred to various stages, which the wet blue leather undergoes and becomes finished leather, but also the fact that each activity is known in the industry with different name. One is called the full-fledged unit, by which, the raw hides 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 Commission....