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TMI Blog2015 (5) TMI 686X X X X Extracts X X X X X X X X Extracts X X X X ..... ether the Assessing Authorities were correct in holding that the assembling of instruments and apparatus for measuring and detecting ionizing radiators as admitted in column 8(a) of Form-3CD is a manufacturing activity producing an article or thing and therefore entitled to claim deduction u/s. 10B of the Act ?" 3. The assessee is in the business of assembling of instruments and apparatus for measuring and detecting ionizing radiators. The assessee claimed deduction under Section 10B of the Income Tax Act, 1961 (for short, hereinafter referred to as the 'Act'). The Assessing Authority was of the view that the assessee has not manufactured or produced articles or things as required under Section 10B(1) of the Act but only is engaged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation (Scintillation) Detectors since 1996. a brief description of the production and the process is given here for the benefit of those who would like to know the process in brief. The Scintillation Principle : The basis principle used in the manufacture of radiation detectors is known "scintillation". Scintillation is a property exhibited by some crystals in which the crystals give out low energy radiation (in the visible or near visible ranges) when subjected to higher energy radiation such as x-ray, y-ray or other such nuclear radiations. The crystals that exhibit this type of property are called scintillation crystals. The radiation detectors manufactured from such crystals are called scintillation detectors. There are several crystal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... crystals. Crystals like sodium iodide are very hygroscopic. It means that they absorb moisture from air and they dissolve in the moisture thus absorbed. Therefore, the crystals must be sealed from exposure to moisture. This is done by sealing the crystals inside a hermetical seal. The third factor is the sensitivity of the OMT to magnetic fields. This is taken care of by providing magnetic shielding around the PMTs. Another factor is the sensitivity of the PMT to the presence of external light. The PMT must be completely sealed from exposure to external light. This is achieved by the sealing with Black epoxy over light shielding. Thus, the construction of radiation detectors involves several process steps. The enclosed flow-chart gives i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he original commodity. The Hon'ble Bombay High Court in the case of CIT v. Tata Locomotive & Engineering Co. Ltd. Held that assembling of Automative bus or truck chasis from imported parts in a knocked down condition is manufacture." 7. The word 'manufacture' has been subject-matter of various decisions. After reviewing those decisions, this court, in the case of CIT v. Murudeshwar Decor Ltd. in ITA No. 477/08 and connected matters, disposed on 1/7/2014, at para-16, has held as under : "From the afore stated judgments, it follows that etymologically the word `manufacture' properly construed would cover the transformation. It is the transformation of a matter into something else. That something else is a question of degree. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omething is brought into existence which is different from that which originally existed, in the sense that the thing produced is by itself a commercially different commodity. The moment there is transformation, a new commodity commercially known as distinct and separate commodity having its own character, use and name, whether it be the result of one process or several processes "manufacture" takes place and duty is attracted." 8. From the aforesaid material, it is clear, the finished product which is sold by the assessee, is different from the material which are procured for making such a finished product. A series of processes are carried out and a new product is arrived. After going through the said process, the product which comes und ..... X X X X Extracts X X X X X X X X Extracts X X X X
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