1979 (8) TMI 94

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....ng of coffee seeds. 3. The assessee is in appeal before us. We had heard the learned counsel for the assessee and the departmental representative. To understand as to what exactly the assessee was doing, we asked the assessee that note be submitted to us to explain the activities of the assessee's coffee curing works. Accordingly, a note has been submitted which reads as follows: "We are agents of the Coffee Board. We receive coffee from the planters and it has to be cured as per the standard fixed by the Coffee Board. After the Coffee is received from the Planters, the Coffee should be taken for curing after it is properly dried as per standard weight fixed by the Coffee Board. The machinery used for curing will be about 20 in num....

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....machinery and female force for grading, coffee will be ready for marketing." At the hearing, no challenge to the correctness of the statements made in this note was made by the learned departmental representative although a specific opportunity was given to the Department. We, therefore, take it as established that what is stated above is what is begin done by these in its curing works to the coffee received by it from the planters. The learned counsel for the assessee has relied on a number of ruling to establish his contention that it is engaged in the manufacture or production of goods. Reliance has been placed on State of Punjab & Ors. vs. Chandulal Kishorilal etc.(1) wherein the Supreme Court has held that ginning process employed t....

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....ial commodity of a finished product which has an entity by itself, but this does not necessarily mean that the materials with which the commodity is to manufactured must lose their identity. Thus, both the words 'manufacture' and 'produce' apply to the bringing into existence of something which is different from its component. 4. Applying these rulings to the activity of the assessee, it is, in our opinion, quite clear that the assessee is engaged in the manufacturing or production of goods. If dehiscing the paddy for removing the husk is a process of manufacture, then the dehiscing coffee by removing the husk by peeler as is clear from the note extracted above would be a process of manufacturing. That apart, as is stated in the note, th....