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TMI Blog2014 (2) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... ng its quality and taste - The assessee did not involve itself even in procuring such basic material - Decided against assessee. - Tax Appeal No. 413 of 2013 - - - Dated:- 28-1-2014 - Akil Kureshi And Sonia Gokani,JJ. For the Petitioner : Mr. Manish J. Shah, Advocate For the Respondent : Mr. Bhatt, Sr. Adv. ORDER (Per : Honourable Mr. Justice Akil Kureshi) Assessee has filed this Tax Appeal calling in question the judgment of the Income Tax Appellate Tribunal dated 14.12.12 raising following question for our consideration: Whether on the facts and in the circumstances of the case, the Tribunal was right in law in holding that the appellant was not a manufacturer/producer of Mathia and Chorafali and therefore, was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reafter freezing it to minus 180C in deep storage freezer for increasing its shelf life. This according to the assessee amounted to manufacturing activity. The Tribunal, however, was unmoved. The Tribunal considered this issue in following manner: From the flow chart of manufacturing process in the case of Mathia / Chorafali submitted by the Ld.A.R. We find that the process id described as under: Receiving of mathia / Chorafali in bulk packaging from supplier in the production area, thereafter the process of sorting takes place and then packing in consumer packs and thereafter freezing to -180C in deep storage freezer. Thus from the flow chart it appears that in the case of mathia and chorafali the assessee does repackagin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of this Court in the case of CIT v. Prabhudas Kishordas Tobacco Products (P) Ltd., 282 ITR 568 (Guj.). On the other hand, learned counsel Shri Manish Bhatt for the Revenue opposed the appeal contending that the Tribunal had come to a factual finding that the assessee did not undertake any manufacturing activity on the outsourced items. Section 10B deduction is available to an exporter who manufactures or produces articles or things. Having heard the learned counsel for the parties and having perused the documents on record, it clearly emerges that part of the exports of the assessee comprised of snack items such as, cholafali, mathia, etc. which was not manufactured by the assessee but the manufacturing activity was outsourced. The ques ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... labour and if so, the contract is one of employment, whether the work is time-work or piece work, or whether the employee did the whole of the work himself or whether he obtained the assistance of other persons also. It was, therefore, observed that merely because the assessee gets the work done through contract workers, in other words, enters into a contract with the workers and pays them on per piece basis, the relief cannot be denied. In the present case, the facts are very different. The assessee was not involved at any stage of manufacture of an article or thing. Even the raw material for preparation of the items was not procured and supplied by the assessee. For any food preparation, raw material itself is of great importance. In s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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