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TMI Blog1993 (2) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... lakhs. Accordingly the Assistant Commissioner did not consider the unit as a "newly set up industrial unit" for the purpose of section 10F. The present application is also directed against order dated December 20, 1991 passed by the Additional Commissioner in a revision preferred by the applicant against the aforesaid order of the Assistant Commissioner. The revision petition was rejected by the Additional Commissioner holding that the cost of main switch, welding transformer, drill stand and grinder were rightly excluded from the amount of investment of fixed assets. The case of the applicant is that it is a registered partnership firm carrying on business of manufacturing various ropes and yarns at its factory. According to it, strande ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner in his revisional order. Hence this application. The application has been resisted by the respondents. Their case in the affidavit-in-opposition is that welding transformer, drill stand and grinder are tools for maintenance of machines and are not required for production which is done by the strander and rope twisting machines. Same is the view of the respondents with regard to the drilling machine. According to them, the grinder which is used for smoothening the ropes cannot be said to be a machine directly used for manufacture. Mr. Sumit Chakraborty, learned Advocate for the applicant, has referred to a scheme called the State Scheme of Incentives for Cottage and Small Scale Industries, 1989 issued by the State Government u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x Officer, Kanpur [1965] 16 STC 563 and Member, Board of Revenue, West Bengal v. Phelps and Co. (P) Ltd. [1972] 29 STC 101 and also a decision of the Andhra Pradesh High Court reported in Commissioner of Incometax v. Sri Krishna Bottlers Pvt. Ltd. [1989] 175 ITR 154 at page 169 in order to support his contention that the welding and drilling machines and other tools and machines left out by the Assistant Commissioner and the Additional Commissioner ought to be treated as plant and machinery or productive equipment for the purpose of section 10F. Mr. T.N. De, the learned State Representative, has opposed the contentions of Mr. Chakraborty and has tried to distinguish the facts and provisions of law applicable to the cases decided by the Supr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... new plant and machinery including the productive equipment, installed or acquired by him on or before the date of first commercial production in such unit. There are certain differences between this definition in section 10F and the explanation to rule 3(66a) of the Bengal Sales Tax Rules, 1941, for instance, under that rule the value of land and building and cost of generator and mould should be excluded from the investment. In any case, since definitions have been provided in section 10F itself the interpretation should follow those definitions for the purpose of section 10F. As regards the grinder, we have no manner of doubt that it is directly used in manufacture, as it finishes the product before marketing. Since starter was treated by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e not directly used in manufacture in the sense that they do not directly manufacture ropes, they are nevertheless plant and machinery and therefore they are liable to be considered at the time of estimating the gross value of fixed assets for the purpose of deciding whether the benefit under section 10F should be extended to the applicant. In other words, in our view the grinder and the main switches are productive equipment and, therefore, they come under plant and machinery. According to us, the welding and drilling machines come under the wider expression "plant and machinery" in section 10F. That being our view, the total investment in fixed capital assets in terms of section 10F will exceed rupees ten lakhs in the case of the applic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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