TaxTMI 
TaxTMI 
2009 (12) TMI 988
X X X X Extracts X X X X
X X X X Extracts X X X X
....r on the facts and in the circumstances of the case, the Hon'ble Tribunal was right in relying on the judgment of Hon'ble Supreme Court in the case of M/s. Lucky Minmat Pvt. Ltd. vs. CIT (2000) 245 ITR 830 wherein only an observation has been made by the Hon'ble Court to the effect that conversion into lime and lime dust or concrete by stone crushers could be considered to be a manufacturing process without considering the subsequent decision and not relying on the decision of the Hon'ble Supreme Court in the case of M/s. Sacs Eagle Chicory vs. CIT (2000) 255 ITR 178 (SC) wherein it has been held that mere crushing of chicory roots into chicory powder cannot be a manufacturing process? The basic question which arises is wh....
X X X X Extracts X X X X
X X X X Extracts X X X X
....w shrimps, prawns and lobsters and processed or frozen shrimps, prawns and lobsters. The dealer and the consumer regard both as shrimps, prawns and lobsters. The only difference is that processed shrimps, prawns and lobsters are ready for the table while raw shrimps, prawns and lobsters are not, but still both are, in commercial parlance, shrimps, prawns and lobsters. It is undoubtedly true that processed shrimps, prawns and lobsters are the result of subjecting raw shrimps, prawns and lobsters to a certain degree of processing but even so they continue to possess their original character and identity as shrimps, prawns and lobsters, notwithstanding the removal of heads and tails, peeling, deveining and cleaning which are necessary for maki....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 to mention here that this decision of the Madras High Court was upheld by the Apex Court in Sacs Eagles Chicory v. Commissioner of Income Tax, 2002 (255) ITR 178. In Indian Hotels Co. Ltd. and others v. Income Tax Officer and others, 2000 (245) ITR 538, the Apex Court again dealt with the question as to what is the meaning to be given to the word 'manufacture'. The Apex Court held that the processing of raw food items such as pulses, cereals, vegetab....
X X X X Extracts X X X X
X X X X Extracts X X X X
....al 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:- "Adverting to facts of the present case, the assessee after plucking or receiving the raw coffee berries makes it undergo nine processes to give it the shape of coffee beans. The net product is absolutely different and separate from the input. The change made in the article results in a new and different article which is recognized in the trade as a new and distinct commodity. The coffee beans have an independent identity distinct from ra....