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Determining whether a groundnut oil mill qualifies as an "industrial undertaking" for wealth tax exemption under s.5(1)(xxxi) of the W.T. Act. Analysis: The petitioner sought exemption for his interest in a groundnut oil mill under s. 5(1)(xxxii) of the W.T. Act, claiming it to be an "industrial undertaking." The Commissioner previously ruled against this claim, stating the mill was not an industrial undertaking. The court delved into the definitions provided in the Act, notably the term "industrial undertaking" as per the Explanation to cl. (xxxi), which includes businesses involved in manufacturing or processing goods. The court emphasized the transformation of raw materials into marketable commodities as a key factor in determining industrial activity. The court referenced various legal precedents to support its interpretation of "manufacture" and "processing of goods." Notably, the Supreme Court's stance that substantial change in goods indicates manufacturing, as seen in cases involving oil production from oilseeds. The court also highlighted the Kerala High Court's explanation that processing involves altering goods to create a commercially distinct product. Applying these principles to the groundnut oil mill's operations, the court concluded that the mill's activities indeed constituted manufacturing and processing of goods. The court rejected the revenue's argument that the mill should be classified as a trading concern rather than an industrial undertaking. It emphasized that engaging in trading activities alongside manufacturing does not negate a business's industrial nature. Additionally, the court dismissed the application of the ejusdem generis doctrine to the Explanation's categories of industrial undertakings, asserting that each category stands independently. Furthermore, the court addressed the revenue's contention regarding the petitioner's failure to raise the issue earlier in the assessment process. It held that the petitioner's presentation of the claim during the revision before the Commissioner was valid, and there was no estoppel preventing the petitioner from raising the matter in the writ petition. Ultimately, the court ruled in favor of the petitioner, declaring the groundnut oil mill as an industrial undertaking and granting the exemption for the petitioner's interest in the mill. As there was no precedent on this specific issue, the court directed each party to bear their own costs.
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