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TMI Blog2003 (3) TMI 25X X X X Extracts X X X X X X X X Extracts X X X X ..... to a process of manufacturing. - The question referred to us, is therefore answered in favour of the Revenue and against the assessee. - - - - - Dated:- 24-3-2003 - Judge(s) : R. JAYASIMHA BABU., K. RAVIRAJA PANDIAN. JUDGMENT The judgment of the court was delivered by R. JAYASIMHA BABU J. - The question, which arises for our consideration in this appeal is as to whether the Tribunal was right in law in holding that the activity of heating raw bitumen to 300 degrees centigrade, without any addition or chemical change in order to obtain solid bitumen, constitutes "manufacturing activity", entitling the assessee to claim deduction under sections 80HHA and 80-I of the Income-tax Act, 1961. The assessee is a small scale industrial u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Supreme Court noted (page 328): "..the assessee, after plucking or receiving the raw coffee berries makes it undergo nine processes to give it the shape of coffee beans. The net product is absolutely different and separate from the input. The change made in the article results in a new and different article which is recognised in the trade as a new and distinct commodity. The coffee beans have an independent identity distinct from the raw material from which it was manufactured. A distinct change comes about in the finished product" The court in that view, concluded that "Conversion of the raw berry into coffee beans would be a manufacturing activity." Heating of the scrap bitumen in order to obtain solid bitumen, by causing the mois ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uperintendent of Central Excise [1997] 10 SCC 717. (vi) In the case of Tata Engineering and Locomotive Co. Ltd. v. Union of India [1997] 89 ELT 463, it was held by the Bombay High Court that cutting, drilling, fastening of angles, plates, etc., to make columns, beams, etc., will not amount to "manufacture". (vii) Cutting industrial laminated sheets (paper based) and glass epoxy laminated sheets into requisite sizes and punching holes for making them capable of being fitted as insulators, does not amount to manufacture, as has been held by the Supreme Court in the case of CCE v. Bakelite Hylam Ltd. [1997] 10 SCC 350. (viii) Recording of sound by jobber on magnetic cassette tapes or spool magnetic tapes supplied by customer does not am ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 541 wherein it was held that curing of arecanuts does not amount to manufacture. (xiv) This court in the case of Computer Graphics Pvt. Ltd. v. Union of India [1991] 52 ELT 491 has held that cutting and slitting of graphic art films in jumbo rolls does not amount to manufacture. (xv) Dehydration of milk to obtain condensed milk has been held by this court as not amounting to manufacture in the case of State of Tamil Nadu v. Indodan Milk Products [1980] 45 STC 498. (xvi) This court has held that crushing of stone boulders to obtain blue metal jelly does not amount to manufacture, in the case of State of Tamil Nadu v. O. P. Aliyar [1992] 87 STC 339. (xvii) This court has also held in the case of State of Tamil Nadu v. K. M. Nataraj ..... X X X X Extracts X X X X X X X X Extracts X X X X
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