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TMI Blog1981 (2) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of ships or in the manufacture or processing of goods or in mining. " The question has been answered in favour of the assessee by the Tribunal and the reference has been made at the instance of the Commissioner. The assessee is a private limited company carrying on the business of retreading tyres. Its claim that it was an industrial company within the meaning of the definition contained in the relevant Finance Act was being rejected by the department. But when the assessee appealed to the AAC for the assessment year 1968-69, he took a different view. He observed: " The appellant says that the company should be charged to tax at the rate applicable to industrial company. This point was raised by the assessee in earlier years but i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ad been adopted in this case with a definite purpose and leading to the accomplishment of a definite result, namely, the production of a different commercial article. We are of opinion that the view taken by the Tribunal is the correct one. There may be some doubt as to whether the process of retreading of tyres is manufacturing process or not, because it could be said that both before and after the process is applied, the commodity remains the same in substance. However, in our opinion, the words " processing of goods " used in the definition refer to a much wider category of activities. As pointed out by the Tribunal, the dictionary defines the expression as referring to the subjection of the goods to some special process of treatment. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of West Bengal [1973] 31 STC 628 (Cal), where it was held that a transformation into a powdered form of " whole " black pepper and turmeric purchased from the market on payment of tax, though not amounting to manufacture, certainly involved an act of processing within the meaning of s. 2(b) of the same West Bengal Act. If the above definitions and decisions are applied, it will be quite clear that the assessee in the present case is engaged in the processing of goods within the meaning of the Finance Act, 1968. In this connection, we may point out that on the facts before them the AAC and the Tribunal have found that the machinery employed by the assessee was the same as that used for the manufacture of new tyres ; that the assessee-compan ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was wide enough to cover the activities of the company in question. They also pointed out that activities of a nature which might not amount to manufacture but which would result in the doing of something to the goods to change or alter their form might be taken in by the term "processing". But they did not for the purposes of the case before them consider the scope of the term in full, because they were of opinion that having regard to the four categories of companies which are referred to in the definition, there was clearly a contrast intended between manufacturing concerns on the one hand and trading concerns on the other. They were of opinion that a hotel was mainly intended for trading and not for production or manufacture. While w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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