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TMI Blog2013 (3) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 04.10.2004 passed in ITA No. 2523/D/1999, ITA No. 2524/D/1999 and ITA No. 2409/D/2000. The Revenue has proposed the following Substantial Questions of Law, being involved in all these appeals:- "(1) Whether on the facts and circumstances of the case, the Tribunal is legally justified in law, in directing the A.O. to allow the relief u/s 80-I of the Act for assessment years 1991-92, 1992-93 and 1995-96 despite the fact that in the assessment year 1990-91, the issue was restored to the file of the A.O. For fresh adjudication of the case and whether this tantamount to review of it's earlier order? (2) Whether on the facts and circumstances of the case, the Tribunal is justified in treating the assessee as engag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rial undertaking, established within the relevant dates and engaged in the business of galvanizing the iron pipes as such it was entitled for the benefits under Section 80-I of the Act. CIT (A) by the order dated 04.02.1999 held that the work of the assessee is merely coating zinc on the MS pipes for protecting it from the rust as such plant and machinery of the assessee is not involved in manufacture or production of any article or thing and the assessee was not entitled to the benefits under Section 80-I of the Act. 4. The assessee again filed an appeal from the aforesaid order before the Tribunal, who by the impugned order, relying upon the previous order of the Tribunal in the matter of the assesssee for the assessment year 1990-91, in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon Commissioner of Sales Tax Vs. M/S Tata Iron and Steel Co. Ltd. 1975 UPTC 104 and Commissioner of Sales Tax Vs. M/S Om Engineering Works, 1986 UPTC 55 and in Gujarat Steel Tubes Ltd. Vs. State of Kerala, 1989 UPTC 1072 (SC) 7. The issue as to whether processing of mild steel rod, bars and rounds from scrap iron amounts to manufacture within the meaning of Section 80-I of the Act came up for consideration before the Supreme Court in CIT v. Krishna Copper Steel Rolling Mills, AIR 1992 SC 422, in which it was held as follows:- "The Finance Act of 1964 decided to grant a rebate in the corporation tax payable by companies in order to encourage development of certain industries which occupy an important place in our economy, th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the metal which is used as the base and other articles manufactured therefrom. We have earlier pointed out that pig iron and iron scrap are fed into furnaces to produce ingots, billets and blooms. But both are iron and steel in different form, the latter being referred to as "semi-finished steel". Likewise, we think, the bars, rods, rounds, wire rods and the like constitute the second stage in which one gets only "finished" forms of iron and steel. Having regard to the nature and weight of the metal, it has to be "finished" to assume these forms before manufacturers of iron and steel articles can take over and proceed to manufacture articles from them by drawing wires or converting them into rails or shaping them into tees, zees, pipes, tub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er purposes. We would like to emphasise, at the cost of repetition, that what we should examine is not the nature of the mill which yields the article but the nature of the article or thing that is manufactured and ask ourselves the question whether such article or thing can be considered as raw material for manufacture of other articles made of the metal or is it itself an article made of the metal. On this issue our view is, as we have already stated, that the goods in the present case fall in the former category. We think Sri Ramachandran is right in pointing out that the mild steel rods, bars or rounds which are manufactured by the assessees here are only finished forms of the metal and not articles made of iron and steel. They only con ..... X X X X Extracts X X X X X X X X Extracts X X X X
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