TaxTMI 
TaxTMI 
TaxTMI 
2015 (4) TMI 60
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....nt is contrary to the ratio of the judgment of the Hon'ble Supreme Court in Collector Excise v. Technoweld Industries [(2003) 155 ELT 209 (SC)]? 2. Primarily, the issue, which requires consideration, is as to whether manufacturing of "Route Markers" by the respondent herein (herein after referred to as the assessee), falls within the definition of "manufacture", entitling him to the deductions, under Section 80IC of the Income Tax Act. 3. The Income Tax Officer, Nahan (H.P.), during assessment of the assessee, for the Assessment Year 2006-2007, disallowed deduction under Section 80IC, so claimed by the assessee. The assessee took the matter before the Commissioner, Income Tax (Appeals), Shimla, which, in terms of order dated 17.9.2009....
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....mm length of the 22mm nipple, keeping balance 50mm length outside the part. Then nipples are weld with stainless steel welding electrodes. Then the welded surface is grinded to smooth finish. 7. Then two L shape stainless strips are weld on stainless pipe A for sign sheets at desired length. 8. Two O Ring travelers are weld at required distance on pipe A. 9. Two cross holes are provided in the assembled length at the joint of A-B and B-C for bolting. 10. All the components, parts are assembled and finally checked for fitment, design etc. 11. Then all the components, parts are assembled and finally checked for fitment, design etc. 12. The various parts of Route marker are then assembled, molded caps are fitted & nutbolting, assembling ....
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.... process of manufacturing. The test to be applied is; does the processing of original commodity bring into existence a commercial different and distinct commodity. (Chowgule and Co. Pvt. Ltd. V. Union of India, (1981) 1 SCC 653). 11. It is a settled principle of law that manufacture is complete as soon as the raw material undergoes some change and a new substance or article is brought into existence, have a definite name, character or use. The new commodity must be commercially separate and distinct commodity having its own character and use. (Aditya Mills Ltd. V. Union of India, (1988) 4 SCC 315). 12. It is also a settled principle of law that the prevalent and generally accepted test to ascertain that there is 'manufacture' is wheth....
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....ourt of India, in Income Tax Officer, Udaipur v. Arihant Tiles and Marbles Private Limited, (2010) 2 SCC 699, after taking into account its earlier decisions rendered in Aman Marble Industries (P) Ltd. V. CCE, (2005) 1 SCC 279; CIT v. Sesa Goa Ltd., (2004) 13 SCC 548; Lucky Minmat (P) Ltd. V. CIT, (2001) 9 SCC 669; Rajasthan SEB v. Associated Stone Industries, (2000) 6 SCC 141; and CIT v. N.C. Budharaja & Co., 1994 Supp (1) SCC 280, held that in a case where the assessee was involved in the business of converting blocks of marble into polished slabs and tiles, by applying the principle that the product can no longer be regarded as original commodity, but recognized in trade as a distinct and new commodity, he was entitled to the exemptions ....
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.... end product cannot be put back in the same original condition. Even in terms of its value, combined price of raw materials used to produce the finished product, is lower than the price of the finished product. 20. These findings of fact, after having perused the record and heard learned counsel for the parties, we find to be in no manner perverse or erroneous, warranting interference. In fact, we are in agreement with the opinion so rendered by the Tribunal. 21. In Collector of Central Excise v. Technoweld Industries, 2003(155) ELT 209 (SC), the Court was dealing with a case where the assessee was engaged in the business of drawing wires into thinner gauge from wires of thicker gauge, by cold drawing process. The old product did not lose....