TaxTMI 
TaxTMI 
2020 (2) TMI 844
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....f converting raw Urad into Urad Dhal was a manufacturing activity and therefore, the Assessee is entitled to deduction under Section 80IA of the Act. 3. The Appeal was admitted by a co-ordinate Bench of this court by its order dated 22.8.2013, raising the following purported substantial question of law:- "Whether on the facts and in the circumstances of the case, the Tribunal was right in holding that the end product viz., dhall is different from the input product viz., gram and the assessee has engaged in manufacturing activity and eligible for deduction under Section 80IB?" 4. The Tribunal has relied upon the view of the other Benches of the Tribunal and the Judgments of the Hon'ble Supreme Court as well. The relevan....
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....ocess of converting Paddy into Rice is also a manufacturing activity and therefore, the Assessee was entitled to deduction under Section 80- IA/80-B of the Act. The relevant portion of the said Judgment of this Court is quoted below for ready reference:- "14. On the consideration of case laws relied upon by both the sides and the provisions of the Act itself, we are of the considered opinion that the benefit of Deduction under Section 80IA/ and 80IB of the Act was intended to promote the industrial activity in the field of infrastructural development and other sectors and those engaged, in the process of manufacture or production of articles or things not included in the Eleventh schedule of the Act, were held entitled to avail suc....
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....icle in question viz., husked Paddy and Rice are two different articles having different value, what can be the reason to deny them the benefit under Section 80 IA and 80 IB of the Act. We see no reason, much less any justifiable reason, for denial of the said benefit to the Assesee before us. 17. We find that the definition of the word "Manufacture" though was not available in the Assessment Years before us upto 2003-2004, but the said definition embodies the concept of transformation of object or article into different commercial article as was discussed in several judicial pronouncements from time to time. If a different commercial article comes into existence as understood by the persons who deal with those things, a different ....
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....cle and therefore, Paddy could not be said to have been consumed in the process of manufacture of Rice and hence, it will not amount to violation of the provision of Section 6 (1) of the Karnataka Sales Tax Act and the Assessee would not be liable to pay Additional Sale Tax. 18. Therefore, we are of the opinion that it would depend upon the context in which the words "Manufacture or production" have to be interpreted by the Court of law. In the present case, the context is whether the industrial activity in the form of dehusking of Paddy into Rice amounts to Industrial undertaking engaged in the ' Manufacture or production' of Rice or not. 19. In the said context, in view of the aforesaid cases, we find no reason t....