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2009 (8) TMI 30
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....itled as Aspinwall and Company Limited Vs. CIT 251 ITR 323 the Supreme Court opined that in the absence of any expressed definition of the word manufacture it has to be given a meaning as is understood in common parlance. It is to be understood as meaning to be the production of articles for use from raw or prepared materials by giving such materials new forms, qualities or combinations whether by hand labour or machines. If the change made in the article results in a new and different article then it would amount to manufacturing activity. Applying the test in the said case, the Apex Court held that process of manufacturing coffee beans from raw berries amounted to manufacturing activity as coffee beans produced from the raw berries had di....
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....ake end product out of slabs is to put full size fibre on one side of the slab which is technically required to give support to the slab, otherwise it will get cracks or it gets broken; (d) In the slabs, there are invariably various holes and cracks. To make it marketable which is the main object of our business, this separate process is adopted. We have to mix up different types of chemicals marble powders or marble cutting for applying slabs to cover holes and cracks; (e) With mixing chemicals and powders etc., the chemical is applied on holes or cracks by which the same gets filled up. After the holes and cracks are filled the slab is taken to the polishing machines; (f) There are 5-7 stages of polishing the slab by different ma....
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....al treatment of covering the holes, scratches or cracks, the same are filled by applying specific chemicals, marble powers with matching colours as per the colour of the marble pieces; (n) The normal thickness of the marble slab happens to be around 18-20 mm whereas in general, the new fashion has developed to use thinner size of the marble for which we again cut the slabs into the average size of around 8-10mm. For this again cutting machine with the specific care is applied and thus the marble thinner thickness is produced" 3. It is clear from the above that after purchasing of blocks of slabs and getting them cut by cutting machines from outside, the process which is undertaken by the assessee is to put full size fibre on one side ....
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....High Court in the case of Arihant Tiles and Marbles Pvt. Ltd. Vs. Income Tax Officer 295 ITR 148(Raj.). In this case, Rajasthan High Court, after taking into account the various judgment of the Supreme Court and other High Courts observed as under: "6. The language used in Section 10B is "manufacture or production". This language is similar to the language used in Section 80-IB. The Supreme Court in CIT Vs. Sesa Goa Ltd. MANU/SC/1123/2004 had an occasion to consider the expression "production". The Rajasthan High Court in Arihant Tiles & Marbles (P) Ltd. Vs. ITO (Supra) for the purpose of Section 80-IB was pleased to hold that the activity namely sawing of marble blocks and subsequent activities of cutting and polishing, will fall within....
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.... the purpose of Section 80-IB was pleased to hold that the activity namely sawing of marble blocks and subsequent activities of cutting and polishing, will fall within the meaning of the expression "production" and therefore, assessee was entitled to benefit under Section 80-IB." 6. Ms. Prem Lata Bansal, learned counsel for the revenue has placed emphasis on the judgment of the Madras High Court in C.I.T. Vs. Vijay Granite Pvt Ltd. 267 ITR 606 (Mad.). In that case, the process was confined to cutting and polishing of granite slabs and on that basis the Madras High Court opined that it would not amount to production and manufacture of articles. We have our reservation about the view taken in the aforesaid case as we are of the prima facie....