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TMI Blog2015 (4) TMI 60X X X X Extracts X X X X X X X X Extracts X X X X ..... IA] as relied by revenue the Court was dealing with a case where the assessee was engaged in the business of drawing wires into thinner gauge from wires of thicker gauge, by cold drawing process. The old product did not lose its identity or could be put to similar and same use. In our considered view, no ratio of law is laid down by the Apex Court in the said decision, unlike the ones we have noticed hereinabove. In the instant case, as we have already observed, by applying the settled principles, the activity carried out by the assessee can only be said to be manufacturing a new product. Thus no hesitation in holding that the Appellate Tribunal was justified in concluding that the product (Route Marker) produced by the assessee was commercially different from its raw material and further, it is commercially known to be different in the market. In other words, the assessee was engaged in manufacturing of the said product. Therefore, the assessee was entitled to deduction claimed under Section 80IC of the Income Tax Act. We find no reason to disagree with the said opinion of the Tribunal. - Decided in favour of assessee. - ITA No. 23 of 2011 - - - Dated:- 17-3-2015 - Sanjay Ka ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ual file cleaning of both ends of pipe A B category is done. 5. The 22mm dia stainless steel pipe is held in holding fixture and nipples of the required length are cut of 100mm with motorized electric cutter. The ends of nipples are grind and cleansed with hand grinder. 6. Part A and B of the pipe will have 22mm nipple welded to them at one end. For this hold Part A/Part B in the jig and insert 25mm length of the 22mm nipple, keeping balance 50mm length outside the part. Then nipples are weld with stainless steel welding electrodes. Then the welded surface is grinded to smooth finish. 7. Then two L shape stainless strips are weld on stainless pipe A for sign sheets at desired length. 8. Two O Ring travelers are weld at required distance on pipe A. 9. Two cross holes are provided in the assembled length at the joint of A-B and B-C for bolting. 10. All the components, parts are assembled and finally checked for fitment, design etc. 11. Then all the components, parts are assembled and finally checked for fitment, design etc. 12. The various parts of Route marker are then assembled, molded caps are fitted nutbolting, assembling is done. Then packed in the hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rded as the original commodity but is, instead, recognized as a distinct and new article that has emerged as a result of the process. {M/s Ujagar Prints and Others (II) v. Union of India and others, (1989) 3 SCC 488 (Constitution Bench)}. 13. It is a settled principle of law that in the absence of definition of the word manufacture , it has to be given a meaning, as is understood in common parlance. It is to be understood as meaning the production of articles for use from raw or prepared articles, like giving such materials new forms, qualities or combinations, whether by hand, labour or machines. If the change made in the article results in new and different article, it would amount to manufacturing activity. (Aspinwall and Co. Ltd. V. Commissioner, Income Tax, Ernakulam, (2001) 7 SCC 525). 14. In a case where the assessee was involved in the activity of conversion of jumbo rolls of photographic films into small flats and rolls of different sizes, the Apex Court held the activity carried out by the assessee to be manufacturing. (India Cine Agencies v. Commissioner of Income Tax, Madras, (2008) 17 SCC 385). 15. It is also a settled principle of law that while interpreting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... product cannot be put back in the same original condition. Even in terms of its value, combined price of raw materials used to produce the finished product, is lower than the price of the finished product. 20. These findings of fact, after having perused the record and heard learned counsel for the parties, we find to be in no manner perverse or erroneous, warranting interference. In fact, we are in agreement with the opinion so rendered by the Tribunal. 21. In Collector of Central Excise v. Technoweld Industries, 2003(155) ELT 209 (SC), the Court was dealing with a case where the assessee was engaged in the business of drawing wires into thinner gauge from wires of thicker gauge, by cold drawing process. The old product did not lose its identity or could be put to similar and same use. In our considered view, no ratio of law is laid down by the Apex Court in the said decision, unlike the ones we have noticed hereinabove. In the instant case, as we have already observed, by applying the settled principles, the activity carried out by the assessee can only be said to be manufacturing a new product. 22. Learned counsel for the Revenue also seeks reliance upon the decision re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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