1982 (6) TMI 174

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nufacture of iron and steel. Thus, he disallowed the claim of the assessee. 2. The assessee appealed to the Commissioner (Appeals). He directed the ITO to allow the initial depreciation and investment allowance as claimed by the assessee. In doing so, he followed the decision of the Kerala High Court in the cases of CIT v. West India Steel Co. Ltd. [1977] 108 ITR 601 (FB) and in CIT v. Mittal Steel Re-rolling & Allied Industries (P.) Ltd. [1977] 108 ITR 207. Against the same, the revenue has come up in appeal. 3. The learned departmental representative submitted that the Commissioner (Appeals) was wrong in allowing initial depreciation and investment allowance claimed by the assessee. He relied on the decision of the Calcutta High Court i....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....tain the word 'metal'. According to the counsel, 'iron and steel' mentioned in the entry in the notification are quite different from 'iron and steel (metal)' mentioned in item (1) in the Fifth Schedule to the Act. We are unable to accept this contention; in fact we are unable to understand 'iron and steel' as anything different from metal. By the addition of the word 'metal' in the Fifth Schedule to the Act, we do not think that anything more or less is meant than using the expression 'iron and steel'. The word 'metal' has perhaps been added to clarify that the commodity produced or manufactured must be still 'iron and steel' and that it should not have lost the characteristics of iron and steel. If iron and steel bars or other raw materia....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....m the passage that had been extracted by the Kerala High Court which we have extracted here, that the 'iron and steel' in the shape of bars, flats and plates are iron and steel exempted under the notification. On the reasoning therein we come to the conclusion that M.S. rods will also be iron and steel. The only question is whether the addition of the word 'metal' after the term 'iron and steel' in Schedule V would make any difference. The real distinction is what has been pointed by the Supreme Court and which has been noticed by the Calcutta High Court in the passage which we have extracted above and that is, whether, by the process of change resulting from the manufacturing process, an article different from iron and steel had come into ....