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TMI Blog2010 (1) TMI 1185X X X X Extracts X X X X X X X X Extracts X X X X ..... -IB of the Income-tax Act, 1961, even though the assessee-company assembled different parts of the Wind Mills together, it does not undergo any process by which as a new and distinct article?" 2. We heard Mr. J. Naresh Kumar, learned Standing Counsel for the appellant. In order to appreciate the question raised, the facts are required to be stated. 3. The assessment year pertains to 2005-06. The respondent-assessee was engaged in the activity of procuring different parts for assembling Wind Mills. The question for consideration is whether such assembling of different parts and thereby ultimately Wind Mill is brought into existence, would amount to the activity of "manufacture", in order to entitle the respondent-assessee fo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... else and that something else is a question of degree, whether that something else is a different commercial commodity having its distinct character, use and name and commercially known as such from that point of view, is a question depending upon the facts and circumstances of the case. (See Empire Industries Ltd. v. Union of India [1985] 3 SCC 314)." The Hon'ble Supreme Court also considered the meaning of the word "production" and in that context, referred to its earlier decision CIT v. Sesa Goa Ltd. [2004] 271 ITR 331 2 and the relevant portion extracted from the said judgment, is to the following effect: "9. The matter can be looked at from another angle. In CIT v. Sesa Goa Ltd. [2004] 271 ITR 331 this Court consi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... articles and goods, big and small but they are never employed to denote the construction activity of the nature involved in the construction of a dam or for that matter a bridge, a road and a building. (See Moti Laminates v. Collector of Central Excise [1995] 3 SCC 23).'" 6. Applying the above test to the case on hand, the different parts procured by the respondent-assessee by themselves cannot be treated as a Wind Mill. Those different parts bear distinctive names and when assembled together, thereafter it gets transformed into an ultimate product which is commercially known as a "Wind Mill". There can, therefore, be no difficulty in holding that such an activity carried on by the respondent-assessee would amount to "m ..... X X X X Extracts X X X X X X X X Extracts X X X X
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