2015 (6) TMI 942

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....onstruction activities. During the year under consideration, the assessee purchased new machinery named HR-180 Piling Ring and related accessories. Generally piling work is done at the site itself by digging bores of required sizes and erecting concrete pipes inside the bore. The new machinery enabled the assessee to fabricate piles of standard sizes at a place located outside the project area; transport the same to project site and place the piles in the bore during the operation of bore itself. The piles so fabricated were called "M.S. liner piles". The assessee claimed additional depreciation u/s 32(1)(iia) of the Act on the cost of above said machinery. The additional depreciation was allowed on the plant and machinery used in the manuf....

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....ollowing observations made by the Hon'ble Supreme Court in the case of N.C. Budharaja & Co. (supra) "it is not as if the assessee supplies prefabricated piles, which are bored into the earth by the contractor or owner, as the case may be". Accordingly he submitted that the Hon'ble Supreme Court has not expressed its view or opinion in respect of manufacturing of "prefabricated piles". He further placed reliance on the definition of the word "manufacture" given in sec. 2(29BA) of the Act and contended that the pre-fabricated piles squarely falls in the definition of the term "manufacture". He further submitted that the assessee has started manufacturing and using the prefabricated piles in the succeeding year and in support of the ....

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.... the business of undertaking contract work of doing piling works in the construction sites. The conventional method of piling involved digging vertical bores and then erecting piles with materials, like, steel, cement, sand, metal etc. The new machinery was capable of preparing the piles in some other place and the said prefabricated piles could be brought to the project site and they can be fitted into the bore. Since the machinery enabled the assessee to produce or manufacture pre-fabricated piles, it has contended that the pre-fabricated piles involve production or manufacture of an article or thing. Accordingly, it was claimed that the assessee is eligible for additional depreciation. 8. However, a careful perusal of the provisions of ....