1984 (11) TMI 23

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....tured by the assessee comes within item 18 of Schedule IX to the Income-tax Act? " The assessee is a company carrying on business in the manufacture of electrical insulation boards, insulating press boards and multiple press paper used for insulation purposes in transformers, motors, etc. These products go by the trade name " kheddahide ". In the assessment year 1975-76, the company while filing a return of income of Rs. 30,21,630 made a claim for initial depreciation under section 32(1)(vi) of the Act relating to additions to plant and machinery after May 31, 1974, in the business of manufacturing insulation boards. This claim was based on the ground that the products manufactured fall under item 18 in Schedule IX of the Act. Item 18 in....

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....ribunal has found that the raw material used and the process of manufacture adopted are similar to those in paper industry. The Tribunal has also found that the products manufactured by the assessee come under the Paper Directory of the Directorate General of Technical Development, Government of India. It has further found that the excise duty levied and licence issued to the assessee are under the Central Excises and Salt Act, 1944, under the item " Paper and paper boards ". In this view of the matter, the Tribunal upheld the claim of the assessee. There is no dispute on the facts found by the Tribunal. In State of Uttar Pradesh v. Kores (India) Ltd. [1977] 39 STC 8, the Supreme Court observed that the word "paper" which has not been....

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....ally be classified as press papers of electrical trade grade. On the basis of the said certificate, the Central Excise authorities are levying excise duty at the same rate as leviable on paper. The industry of the assessee and like industries are being handled under the Paper Directory of the Directorate General of Technical Development, Government of India. From these circumstances, it is clear that the products manufactured by the assessee are similar to paper. The most relevant circumstance is the classification on for the purpose of levy of excise duty under the Central Excises and Salt Act, 1944. That levy is based on the test certificate issued by the National Test House, Alipore, Calcutta, which has classified the products manufac....