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TMI Blog1990 (11) TMI 193X X X X Extracts X X X X X X X X Extracts X X X X ..... while declining to answer the question referred to it, observed as follows in their judgment dated 12-1-1990 in I.T.R. No. 86 of 1986 : " The question as to whether M/s. Popular Garage is engaged in the business of "processing goods"--the vital issue in this case--is largely a question of fact. (See--P.C. Cheriyan v. Berfi Devi AIR 1980 S.C. 86) at page (89 Para 10) and Federal Commissioner of Taxation v. Jack Zinader Proprietary Limited--(1949) 78 C.L.R. 336 at pp. 343 and 350--Per Dixon J and Williams J. As a final fact finding authority, it is for the Income-tax Appellate Tribunal to find whether by doing the work of re-boring of automobile and marine engines, M/s. Popular Garage is engaged in the business of "processing of goods". ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SC 1014. (vii) Addl. CIT v. Kalsi Tyre (P.) Ltd. [1981] 131 ITR 636 (Delhi) ; (viii) P. Alikunju, M.A. Nazeer Cashew lndustries v. CIT [1987] 166 ITR 804 (Ker.) ; (ix) Shree Mulchand Co. Ltd. v CIT [1986] 162 ITR 764 (Bom.) ; (x) CWT v. Jagdish Singh Sekhar [1987] 167 ITR 558 (Pat.) and (xi) CWT v. Smt. Premlatabai [1982] 137 ITR 329 (M.P.) He further submitted that the work done by the firm M/s. Popular Garage, in which the assessee is a partner, cannot be termed as mere repairs as it involved processing of the engines in a manner akin to the manufacturing process. For this purpose, he filed a certificate from a Chartered Engineer, which is at page 3 of the paper book. Finally, he submitted that the firm was engaged in the proc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ned job numbers. They are sent to the dismantling section. Engine parts are washed. Preliminary inspection takes place. A list of spare-parts required for rejuvenation is prepared. Then the engines are sent to different locations for the work to be carried out on it. The engine block undergoes black-smithing. Then it is taken to the press for sleeve removing and fixing. Then to the metalling section for ret. seat metalling. Then to the welding section for crack portion welding or for bore pressing and for removing out the broken studs. Then to sylinder boring for the purpose of boring. Next to this is the honing process and in the mechanical section main bearing fitting operation is done. Then the engine block goes to the lathe for cap faci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nding, if necessary. Starter dynamo is sent to the electrical section for dismantling, checking and resetting. AC pump, oil pump, water pump and air compressor etc. are dismantled for checking and resetting operations. Rocker assembling is sent to blacksmith after dismantling for finger facing, bush reaming and then to the mechanical section for resetting before being assembled and tested. There are also other sub-assembly work connected with the engines such as housing, main axle, sub-axle, suspension and all types of bearings. The first former two undergo changes in press section, welding section and sometimes in the drilling section. Sub axle is handled by the fitter for bush reaming and fixing new bushes and then boring with reamer. Sus ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... emove metal and to make a valve sit in proper size. Thus there is manufacturing activity in this operation. 4.6 In the crank shaft grinding section, where special bearing are not available, metal is poured on the cutting rod or on the boring shelf to bring it to a required size of the normal bearing and this operation done in the workshop is akin to manufacture or production activity. From a study of the work-flow chart and the operations that are conducted on the worn-out machine, we have no hesitation in holding that the goods namely, the engines undergo processing operations mostly and in some cases manufacturing or production operations. Thus, the firm can be properly described as an industrial undertaking where some manufacturing or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... c. as found in Central Excises and Salt Act, 1944 and thus the decision went on the particular facts of the case, vis-a-vis the Central Excises and Salt Act read with the notification Nos. 201 of 1979 dated 4-6-1979 and 105 of 1982, dated 28-2-1982 issued thereunder. Thus the facts are dissimilar and the provisions of the Central Excises and Salt Act and Wealth-tax Act are also different. 6. The case laws relied on by the learned counsel for the assessee might support his case, but then our decision is based on the finding of facts pursuant to the inspection of the several operations conducted in the workshop and in the context of 5(1)(xxxii) of WT Act and, therefore, it is not necessary for us to go into the case laws cited on both sides ..... X X X X Extracts X X X X X X X X Extracts X X X X
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