1989 (3) TMI 10

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....e and then selling them in its restaurant as foodstuffs and eatables. The foodstuffs and eatables were prepared on the orders placed by customers. The dispute in this case is as to whether the company can be described as an industrial company. The Tribunal held that preparation of food articles in the case of the assessee would also amount to processing. It further held that the meaning of the word "manufacture" or "processing" should not be confined to non-edible stuff. The correctness of the conclusion of the Tribunal has been challenged by the Department. The definition of "industrial company" as given by the Finance Act, 1975, is as under : "2(8)(c) 'industrial company', means a company which is mainly engaged in the business of g....

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....f ships or mining do not form part of any one particular genus. Mr. Dhar has not been able to satisfy us as to how the doctrine "ejusdem generis" can be invoked in this case. The phrase "processing of goods" cannot take its colour from the other activities mentioned in the definition section. Moreover, the well-known rule of construction is that if two interpretations of a taxing statute are possible, the interpretation which favours the assessee must be adopted. Mr. Deb, appearing on behalf of the assessee, drew our attention to a judgment of this court in the case of G. A. Renderian Ltd. v. CIT [1984] 145 ITR 387, where, in construing the definition of "industrial company", it was held that the word "processing" was broad enough to ....

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....ee why the activity of the assessee cannot be regarded as "manufacture" or "processing". The Legislature has used the word "manufacture" and also the word "processing" to indicate two different types of activities. There may be some overlapping in certain cases. It may be that certain activities may fall within the meaning of the word "processing" as well as " manufacture". But, generally, the two expressions must not be used as synonymous so as to make the word "processing" otiose and meaningless. We are also unable to uphold the contention that the intention of the Legislature was only to treat a manufacturing concern as an "industrial company". If a company is engaged in the business of distribution of electricity or any other form of....