TaxTMI 
TaxTMI 
2025 (10) TMI 287
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.... Objections are identical, hence the same have been heard together and are being disposed of by this common order for the sake of convenience. 2. All the appeals of the revenue are time barred by 66 days. Separate applications for condonation of delay have been filed. Considering the averments made in the applications, the delay in filing the present appeals is hereby condoned. 3. The sole issue involved in all these appeals is as to whether the product manufactured by the assessee namely, "organic inedible fatty acid" would fall within the excluded/negative items as listed in XIII Schedule of the Act and, therefore, whether the deduction claimed by the assessee u/s. 80IC of the Act is not admissible to the assessee ? 4. Brief facts as extracted from the order of the Ld. CIT(A) are that the assessee is engaged in the manufacture of 'distilled fatty acid' for which it had set-up a plant in the Solan District of Himachal Pradesh which is admittedly notified backward industrial area in terms of Section 80IC(2)(a)(ii) of the Act vide CBDT Notification No.80/2008 dated 27.08.2008. From the facts on record, it is observed that the assessee had commenced production from 0....
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....sake of ready reference, is reproduced as under: "7.5. Having considered the entire factual matrix of the case, I note that the appellant had set-up a manufacturing {unit in Solan, Himachal Pradesh which is a notified industrially backward district under Section 80IC of the Act. Clause (2) of Section 80IC of the Act covers two categories viz., sub-clause (a) allows deduction to industrial undertaking located in notified area (Himachal Pradesh included) provided the item/product manufactured is not covered by the negative list set out in Thirteenth Schedule and sub-clause (b) allows deduction to industrial undertaking located in notified area (Himachal Pradesh included) provided the item/product manufactured is covered by the list set out in Fourteenth Schedule, It is noted that the appellant had claimed deduction in terms of Section,80IC(2)(a) of the Act i.e. it was an industrial undertaking located in Solan, Himachal Pradesh (a notified area) and the product - organic inedible fatty acid manufactured did not fall within the negative list set out in Thirteenth Schedule. The dispute in the present case however is noted to have emanated from the erroneous reporting made by t....
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....sification Sub-class under National Industrial Classification (NIC), 1998 1. Tobacco and tobacco products including cigarettes and pan masala 24.01 to 24.04 and 21.06 1600 2. Thermal Power Plant (coal/oil based) 40102 or 40103 3. Coal washeries/dry coal processing 4. Inorganic Chemicals excluding medicinal grade oxygen (2804.11), medicinal grade hydrogen peroxide (2847.11), compressed air (2851.30) Chapter 28 5. Organic chemicals excluding Provitamins/ vitamins, Hormones (29.36), Glycosides (29.39), sugars* (29.40) Chapter 29 24117 6. Tanning and dyeing extracts, tannins and their derivatives, dyes, colours, paints and varnishes; putty, fillers and other mastics; inks Chapter 32 24113 or 24114 7. Marble and mineral substances not classified elsewhere 25.04 25.05 14106 or 14107 8. Flour mills/rice mills 11.01 15311 9. Foundries using coal 10. ....
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....h at least one side exceeding 36 cms. in unfolded state. 4803.00 Kraft paper supplied to a Braille press against an indent placed by the National Institute for Visually Handicapped, Dehradun 4804.10 Kraft paper and paperboard used in the manufacture of cartons for packing of horticultural produce 4804.20 Others 4804.90 Other uncoated paper and paperboard, in roll or sheets, not further worked or processed than as specified in Note 2 to this Chapter. 4805.00 Grease-proof paper 4806.10 Glassine and other glazed transparent or translucent paper 4806.20 Others 4806.90 Straw Board, in the manufacture of which sun- drying process has been employed. 4807.91 Straw paper and other straw board, whether or not covered with paper other than straw paper. 4807.92 ....
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....he several line items mentioned therein, I find that the appellant had rightly contended that the product - organic inedible fatty acid did not fall under any of the items specified in Chapter - 29 of the Excise Classification and therefore this finding rendered by the AO was erroneous. 7.8 Instead, it is noted that the product - organic inedible fatty acid fell under Chapter 38 of the excise classification which includes Industrial Monocarboxylic Fatty Acids. It is observed that Industrial Monocarboxylic Fatty Acids is defined to include long chain fatty acids containing even number of carbon atoms attached to a carboxyl group. The process involves using Crude Fatty Acids obtained from the reaction which are distilled in multiple vacuum distillation columns in high temperature and high vacuum conditions to remove the low-boiling and high- boiling impurities from the fatty acids. The Distilled Fatty Acids, which is manufactured by the appellant, are obtained after distillation which are used in the production of Toilet Soap Noodles, Cleansing Products, Surfactants etc. and hence stands covered by the Chapter 38 of excise classification. 7.9 It is also noted that t....