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2006 (7) TMI 112

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....polishing them into  blocks  known  in  the  industry  as  dimensional blocks.  The main submission of the assessee before the Commissioner of Income Tax (Appeals) was  that granite was not to be considered as a mineral and therefore,  the  relief under section  80  HHC  was  allowable.    The  Commissioner  agreed  with the appellant and allowed the appeals.  On appeal by the Department, the  Tribunal held in  favour  of  the  Department.   Hence, the present appeals raising the following substantial questions of law: (i)   Whether on the facts and in the circumstances of the case the&n....

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.... Commissioner of Income-tax [2004] 271 ITR 322. 4.  This  Court  in Commissioner of Income-tax Vs.  Pooshya Exports P.  Ltd., [2003] 262 ITR 417,  after  referring  the  relevant  provision  of  the statute,  i.e.,  Section  80HHC of the Income-tax Act, held that, by virtue of the expression "the export of any goods or merchandise to which  this  section applies"  employed  in  Section  80HHC  and by virtue of sub-section 2(b)(ii), which specifically denied the benefit of the  section  to  export  of  granite (mineral),  the benefit under section 80 HHC is not available to the assessee; that by the Ame....

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.... would follow that for the unamended section 80HHC(2)(b) cut and polished granite would also be a mineral.  The introduction of the phrase "other than" in clause (b) of subsection (2) of section 80HHC in 1991 in our opinion,indicates the carving out of  a  specific class from the generic class of "minerals and ores".  This means, that were it not  for  the  exception, the specified processed minerals and ores would have been covered by the words " minerals and ores".  It also indicates  that  only the  minerals and ores subjected to the process of cutting and polishing would be entitled to the benefit of section 80HHC meaning  thereby  that  all  other species  ....