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TMI Blog1992 (8) TMI 249X X X X Extracts X X X X X X X X Extracts X X X X ..... a. Her case is as follows: She carries on the business of manufacturing, making or processing ceiling fans in her newly established small-scale industrial unit under the trade name Eagle Enterprises at 219, S.N. Roy Road, Behala, Calcutta-700 038. The applicant purchases components of ceiling fan, viz., top cover, bottom cover, stator stamping, copper wire, shaft, rotor stamping, aluminium ingot, ball bearing, condenser, aluminium sheet and regulator at concessional rate of tax for the purpose of manufacturing. Some of these components are processed further from outside. Thereafter, drilling of airhole by drilling machine, anti-rust lacquering, assembly of all the components and testing of the R.P.M. at 180 volts and 220 volts by volt meter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with law keeping in view the observations made in the judgment. The Tribunal observed that it should be ascertained what type of work is being done by the applicant from outside agencies and what type of work is being done in the unit itself. It was also observed by the Tribunal that the respondents did not dispute the fact that assembly job, in so far as it relates to the manufacture of fan, is an act of manufacture. In pursuance of the said direction, the Additional Commissioner reheard the matter after visiting the factory and considering the flow-chart prepared by the applicant indicating the modus operandi followed in manufacturing/processing of ceiling fans. Thereafter, the application for renewal of eligibility certificate was again ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the SSI certificate and that she is a manufacturer of ceiling fans also. But almost the entire manufacturing work is done from outside the newly set-up industrial unit. It was, therefore, held that the ceiling fans sold by the applicant could not be said to have been manufactured in the newly set-up industrial unit. 5.. The case of the applicant is that the notification does not enjoin that the manufacture of the raw materials and the component parts of the notified commodity also has to be done in the newly set-up industrial unit. The notification only restricts manufacture of the notified commodity, viz., ceiling fan in this case, in the industrial unit and not the components thereof. Mr. G.C. Mookerji, learned advocate for the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacture in all its aspects must have to be done in the small-scale industrial unit set-up by the dealer and nowhere else. This line of argument was, however, not adopted by Mr. D. Majumdar, learned State Representative. He conceded the fact that assembly of components in this case amounts to manufacturing of ceiling fans, since a new commercial commodity emerges in the process. His objection is that the activity of the dealer with regard to manufacture is not in conformity with the SSI certificate. According to him, the applicant holds SSI certificate in respect of assembly of ceiling fans only and the industry would have conformed to that certificate if it had purchased the components and simply assembled them instead of manufacturing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustries Department indicates the location of the factory and the manufacturing activity involving Here italicised. specified item or items of manufacture. These are an integral part of such registration. 9.. For the adjudication of this case, it is necessary to ascertain the exact nature of the manufacturing activity of the industry. In other words, we have to determine what manufacturing processes the industry is required to undertake to manufacture the end-product and to identify the raw materials or intermediates, which are required for such processing to bring out the final product. It is evident from the SSI certificate indicating the manufacturing activity that the industry is required to perform the job of assembly of ceiling fan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tax exemption in respect of sales of such components unless these are manufactured in his own industrial unit. The case of an industry manufacturing or assembling ceiling fans in its unit is, however, quite different. An industry registered as a small-scale unit with assembly of ceiling fans as its manufacturing activity does not deviate from the terms of its registration, if the dealer manufactures components also, not in the unit, but from elsewhere. Even if the dealer manufactures such components in the industrial unit itself that should not stand in the way of his getting exemption for sales of ceiling fans, when the industry is required to do assembly work only. Of course, the industry is required to be registered as a manufacturer of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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