1997 (8) TMI 304

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..... ts have imported pond aerators which has been classified under Heading 8479.89. However, the original authority denied the benefit of this Notification holding that pond aerators was not used for production of any commodity inasmuch as the same were used in the Acquafarm for shrimps production. Pond Aerators provide for necessary oxygeneration of the water which is essential for the survival and growth of shrimps. 2. The learned DR for the Department has pleaded that the learned lower appellate authority was in error in having allowed the benefit of this Notification inasmuch as no commodity as such came to be produced in the farm and in any case the equipment in question was not instrumental in the production of prawns. He has pleaded th .....

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..... le the seedlings are purchased by the respondents from outside these seedlings cannot be considered as prawns as such as a commodity for sale and these become prawns as a commodity only after they are grown into full size in the Acquafarm. His plea is that prawns being an edible commodity which is bought and sold for its value as edible product, the machinery used for the purpose should be treated as for production of a commodity. 4. We have considered the pleas made by both the sides. The question that fails for consideration is as to what should be the meaning attached to the term for production of commodities. The Notification does not amplify as to the scope of the term production of commodity as such. This term therefore has to be .....

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..... odity. We observe that the term commodity as defined above can cover items like full grown prawns because there emerges as an article of trade. In this background it can be said that a commodity has been produced in the Acquafarm. We observe that prawn farming is a recent development and this farming is only done for the purpose of bringing into existence tradeable item and and the tariff has to be therefore, understood in the background, of this technological advancement made and the new production process which have emerged. Taxation authorities have to take note of this realities as are emerging and have to interpret the tariff in a dynamic method to ensure that the benefits as are made available are not denied by reason of any narrow .....

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