1975 (11) TMI 52

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..... ' means an undertaking engaged in the business of generation or distribution of electricity or any other form of power or in the construction of ships or in the manufacture or processing of goods or in mining." 3. The WTO did not discuss in detail the nature of activities involved in any of three business activities of the firm. He only stated as follows.— "In my opinion, the assessee is not engaged in the manufacture or processing of goods, but only in the process of making the goods fit for marketing and for the purpose of exemption under cl. (xxxii) this process alone will not suffice". 4. In the grounds of appeal the assessee did not describe the details of the activity. He only claimed for the relief under s. 5(1)(xxxii). The .....

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..... put in a wooden container from whe it is automatically fed by bucket conveyors into the machine. Through one outlet the processed garbled pepper comes out. Through each of the other four openings the light pepper(2) half pepper (3) dust(4) stones and pepper not separated from stem come out. This machine has a capacity of garbling 15 tonnes a day. Of course in smaller concerns a less sophisticated machine a smaller capacity is used but still all of them run on power. It may be possible to garble by manual labour alone without machine but this will not be fool-proof and will be costly. All the shipments are subject to quality test in India as well as at destination. Further exports of garbled pepper with light barries (light pepper) of more t .....

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..... ted so that under the force of blowing air the pepper gets, depending on its weight, the heaviest falling under the best quality, segregated into various grades just like winnowing paddy. 8. We are quite satisfied that this is not manufacture. But at the same time it is processing. Even winnowing of paddy is processing. Anything done to make the goods of a better quality than what it was before is processing. If from a quantity of rice a person seeds out the best 'A' class quality rice it may amount to processing. There need be no doubt about this. Under the IT Act what a cultivator does to render the produce raised by him fit to be taken to the market is known as a process employed by the cultivator. Here some work is done to separate t .....

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