TaxTMI 
TaxTMI 
2009 (12) TMI 566
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....stated the facts of the case are that the appellant-assessee is an industrial unit running stone crushers. The question which has arisen for decision in the case is whether the process of crushing stone into grit etc. is a manufacturing activity or not? The assessee has claimed 100% deduction in respect of this income claiming that it is a manufacturing activity within the meaning of Section 801A of the Income Tax Act, 1961. The contention of the assessee was rejected by the Assessing Officer. The appeals filed by the asessee were also dismissed on the ground that the process of crushing of stone into stone concrete, i.e., grit is not a manufacturing activity. I have heard Sh.Vishal Mohan, learned counsel for the assessee and Sh.Vinay Ku....
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....se to be the same commodity or become a different commodity. The Apex Court held as follows:- 6. It is clear on an application of this test that processed or frozen shrimps, prawns and lobsters are commercially regarded the same commodity as raw shrimps, prawns and lobsters. When raw shrimps, prawns and lobsters are subjected to the process of cutting of heads and tails, peeling, deveining, cleaning and freezing, they do not cease to be shrimps, prawns and lobsters and become another distinct commodity. They are in common parlance known as shrimps, prawns and lobsters. There is no essential difference between raw shrimps, prawns and lobsters and processed or frozen shrimps, prawns and lobsters. The dealer and the consumer regard both as ....
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.... Court held as follows:- "We have carefully considered the submissions of the learned counsel appearing on either side. So far as the case on hand is concerned, stone boulders or blocks initially extracted from mines by excavation are subject to the process of crushing mechanically or by manual labour and by such process the resultant commodity or goods, commonly known as 'bajri' or 'gitti' are obtained and sold in market. There could be no serious dispute or controversy over the factual position that the stone blocks or boulders excavated from mines from the earth have different user and purpose and either cannot be an effective substitute in the matter of their own area or purpose of use than 'bajri' or 'gitti'. Not only the manufactur....
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....s High Court held as follows:- "The fact that the chicory powder is used for consumption in combination with coffee powder does not make the chicory powder any different in so far as its identity is concerned, as chicory. Chicory powder is chicory in powder form and nothing else. Mere change in the form of the same commodity does not necessarily involve change of identity. The pineapple fruit when plucked from the tree and even after it is cut into pineapple slices retains the same identity as pineapple. Chicory powder and chicory root have the common identity of being chicory. The change in the form to powder in the case of chicory and to slices in the case of pineapple does not result in a change of identity." It would be pertinent ....
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....r the process of manufacturing coffee beans from raw berries amounts to manufacture. The Apex Court after making reference to the Encyclopedia Britannica held that coffee is a beverage made from roasted seeds (beans) of the coffee plant and found that the process of coffee into roasted coffee went through nine processes. Firstly the coffee was dried in the sunlight. Then the outer husk of the coffee been was removed, if necessary, by mechanical operation. The coffee seeds were then extracted and polishing was done. Thereafter, gradation was done where the good coffee was separated by mechanical as well as manual grading. The Court held that net product is absolutely different and separate from the input. The Apex Court held as follows:- ....
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....x Court in Lucky Minmat Pvt. Ltd. Vs. Commissioner of Income Tax, 2000 (245) ITR 830 wherein the Apex Court has held as follows:- "The conversion into lime and lime dust or concrete by stone crushers could legitimately be considered to be a manufacturing process while the mere mining of limestone and marble and cutting the same before it was sold in the market could not be so considered." According to Sh.Vinay Kuthiala, learned counsel for the revenue, this observation is only obiter dicta and is not the ratio of the decision and the question whether an activity amounts to manufacture or not is to be decided in the facts of each case. As far as conversion of boulders into grit is concerned, a Division Bench of this Court in the case M....