TaxTMI 
TaxTMI 
2003 (6) TMI 17
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....of 30 per cent. on two items, namely, (1) hot mixing plant, and (2) paver finishing machine used by the assessee in its activity of road building ?" We have heard senior standing counsel, Shri M. R. Bhatt, for the applicant-Revenue. Nobody has appeared for the respondent-assessee, though the respondent-assessee has been duly served with the notice of this court. The facts giving rise to this reference, in a nutshell, are as under: For the assessment year 1982-83, the assessee had claimed depreciation at 30 per cent. on the following two machineries: (1) hot mixing plant, and (2) Paver finishing machine. The assessee is in the business of construction of roads and, according to it, both the machines referred to hereinabove were "....
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....led to depreciation at 30 per cent. or 15 per cent. Learned counsel, Shri M. R. Bhatt, has submitted that the Tribunal was in error while considering and following its order passed in Hindustan Construction Co. [1989] 30 ITO 171 (Ahm). He has drawn our attention to the said order and also to a circular, which has been referred to in para. 13 of the said order. It has been submitted by the learned advocate that the Tribunal allowed depreciation at 30 per cent. by considering the aforestated two machineries as "earth-moving machines" though, in fact, the said machineries cannot be considered to be earth-moving machineries. It has been submitted by him that in the case of Hindustan Construction Co. [1989] 30 ITD 171 (Ahm.), the Tribun....
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....further consideration of the matter, it has now been decided to categorise the earth moving machinery industry in the following manner: (a) Earth moving machinery including bull dozers, dumpers, scrappers, loaders, shovels, vibratory compactors and drag lines (excluding walking drag lines), (b) Walking drag lines, (c) Road rollers, hot-mix plants and other road-construction and bridge construction machinery. 3. The entrepreneurs are requested to note the above mentioned changes." According to senior standing counsel, the aforestated circular has not been issued either by the Central Board of Direct Taxes or by any authority concerned with the Act or by the Finance Department. The said circular is not pertaining to determinati....
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....chine" is concerned, the said machine is used for the purpose of giving adequate pressure on the surface of the road to be constructed, so that the road can withstand the pressure of vehicular traffic. Looking to the said fact, it cannot be said that "paver finishing machine" is an earth moving machinery. We, therefore, come to a conclusion that paver finishing machine is a "road making plant and machinery." Looking to the aforesaid facts, it is clear that the machineries in question are being used for the purpose of construction of road and, therefore, by no stretch of imagination it can be said that the said machineries were being used for the purpose of moving earth from one place to another. Thus, "hot mixing plant" and "paver finish....