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TMI Blog2017 (8) TMI 562X X X X Extracts X X X X X X X X Extracts X X X X ..... ding in the goods, is not factually correct. The statements taken by the revenue of two of the suppliers were never confronted to the assessee. No opportunity to cross examine these persons were provided. Further as stated in the above part of the order, the purchase bills of Tulsi Jewellers itself mentioned that the assessee has purchased unmounted, unpolished jewelery. The sales bill also suggest that the assessee has sold cut and polished semi precious stones, gold jewellery setted with diamond and precious stones, silver jewellery beads with diamond and cut and polished semi precious stones. Further there was no carry forward stock from any old firm, the entire input and out coming stock was new, therefore, it cannot be said that this unit was out of the reconstruction of the existing unit. Considering all these factual aspects, the assessee deserves for benefit of Section 10A of the Act. - Decided in favour of assessee. - ITA No. 469/JP/2015 - - - Dated:- 1-8-2017 - SHRI BHAGCHAND, ACCOUNTANT MEMBER For The Assessee : Shri Manish Agarwal (CA) For The Revenue : Shri R.A. Verma (Addl.CIT) ORDER PER: BHAGCHAND, A.M. This is an appeal filed by t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d in the business of manufacturing and export of gold and silver jewellery embedded with precious and semi-precious stones. The assessee also engaged in cutting, polishing and export of semi-precious and precious stones. The assessee has claimed exemption U/s 10A of the Act, which was denied by the Assessing Officer and the ld. CIT(A) has not granted any relief to the assessee. The ld AR of the assessee further submitted that up to the assessment year 2009-10, the assessee was engaged in the trading of precious and semi-precious stone in the name and style of M/s Kamaldeep Jewellers and the business was carried out from 877, White house, Third Floor, Ganga Mata Ki Gali, Gopal jika Rasta, Jaipur. For the year under consideration, the assessee discontinued his trading business and started a new business activity of manufacturing gold and silver jewellery embedded with precious and semi-precious stones in SEZ. The assessee also started cutting, polishing and exporting of precious and semi-precious stones, under the same name of M/s Kamaldeep Jewellers of which the manufacturing unit at H- 123, SEZ-2 Sitapura Industrial Area, Jaipur. The assessee was deriving income from export of jewe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the suppliers. He also relied on the decision of the Hon'ble Supreme Court in the case of CCE Vs. Andaman Timber Industries reported in 2015 (324) ELT 641. He further submitted that the Assessing Officer as well as the ld. CIT(A) has lost sight to the fact that the items purchased were plain un-mounted jewellery, which has been clearly mentioned in bill itself. Such purchases were nothing but raw material for the appellant, which is commonly known as ghat in the business parlance. Therefore, the finding of the Assessing Officer as well as the ld. CIT(A) that the assessee has purchased finished goods is completely baseless. The assessee after purchasing the ghat embedded the precious and semi-precious stones, which are cut and polished by the assessee in its SEZ unit and then such finished goods were exported. These facts clearly established that the lower authorities were not justified in denying exemption to the assessee. After procurement of raw material (un-mounted castings of metals and precious and semiprecious stones in rough form) these items are studded/embedded by cut and polished precious and semi-precious stones. Assessee did cutting and polishing of rough preci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p. He further submitted that the machinery purchases was of a smaller amount, therefore, there appears to be no manufacturing activity carried out by the assessee. He prayed to sustain the order of the authorities below. 5. I have heard the rival contentions of both the parties, perused the material available on the record and also gone through the orders of the authorities below. I have also perused the paper book submitted by the assessee. The assessee was deriving income from export of jewellery and precious and semi precious stones so manufactured in his newly established manufacturing unit situated in SEZ, Jaipur. The assessee before the authorities below that this unit was not made out of any reconstruction of any old unit. The assessee acquired land from RIICO on lease on 02/2/2006 and obtained approval from Development Commissioner for manufacturing of embedded jewellery. The Assistant Development Commissioner, Jaipur SEZ, Sitapura, Jaipur in its letter No. 2-77/SEZ-II(J)/Proj-1549 dated 21/12/2005 granted permission and extended all the facilities and privileges admissible and subject to the provisions as envisaged in SEZ scheme, 2004-2009 for the establishing new under ..... X X X X Extracts X X X X X X X X Extracts X X X X
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