2006 (7) TMI 112

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..... asting and excavation of Granite and then cutting and polishing them into blocks known in the industry as dimensional blocks. The main submission of the assessee before the Commissioner of Income Tax (Appeals) was that granite was not to be considered as a mineral and therefore, the relief under section 80 HHC was allowable. The Commissioner agreed with the appellant and allowed the appeals. On appeal by the Department, the Tribunal held in favour of the Department. Hence, the present appeals raising the following substantial questions of law: (i) Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was right in law in holding that the profits derived fro the expor .....

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..... ndise to which this section applies" employed in Section 80HHC and by virtue of sub-section 2(b)(ii), which specifically denied the benefit of the section to export of granite (mineral), the benefit under section 80 HHC is not available to the assessee; that by the Amendment Act 2 of 1991, an exception has been carved out to the specific provision which excluded, rather denied the benefit conferred under section 80HHC to export of minerals (granite); that the amendment brought by the Finance (No.2) Act of 1991 to Section 80HHC is only prospective and effective from April 1, 1991; and that the statutory provision is very clear in the sense that section 80HHC is not applicable to the export of granite. would be rendered .....

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..... es of processed minerals and ores would continue to be covered by the general exclusion applicable to the generic class. The 1991 amendment of section 80HHC thus conclusively demonstrates that the words "minerals and ores" must be construed widely and in an unrestricted manner. As has been held in Municipal Committee v. Manilal Manekji P. Ltd., AIR 19 67 SC 1201 ;[1967] 2 SCR 100 and Pappu Sweets and Biscuits v. Commissioner of Trade Tax, U. P. [1998] 7 SCC 228 ; [1998] 111 STC 425 (SC), subsequent legislation may be looked into to fix the proper interpretation to be put on the statutory provisions as it stood earlier. The benefit of section 80HHC has been extended by the amendment to a specific kind .....

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