vat rate

WE HAVE PURCHASED SILVER FOIL CALLED VARKH FROM UTTAR PRADESH M/S ABC TAXED @ 1%. THIS ITEM IS USED IN MITHAI AND MEETHI SUPARI. IN OUR CASE THE A.C. IS OF THE CONTENTION THAT THE SILVER FOIL IS NOT ARTICLE OF SILVER AND SHOULD BE TAKEN IN THE 12.5%  VAT TAX RATE. IN WHAT COMMODITY AND TAX RATE SHOULD THE SILVER FOIL CALLED VARKH BE TREATED

VAT RATE ON DETERGENT POWDER IN UTTAR PRADESH IS 12.5% AND ADDITIONAL TAX IS 1%.