9911796707
TMI Blog1980 (10) TMI 53X X X X Extracts X X X X X X X X Extracts X X X X ..... d for higher rate of development rebate at 25% , being priority industry within the meaning of item No. 7 of Schedule V ?" The assessee is a private limited company which manufactures conduit pipes and tubes. The ITO, while completing the assessment for the year 1973-74, allowed development rebate at 15% only. The assessee preferred an appeal before the AAC and contended that as the machinery and plant for which the assessee was claiming development rebate had been installed by it for the purposes of business of manufacturing an article mentioned in Schedule V to the I.T. Act, it was, under s. 33(1)(b)(B)(i)(b) entitled to rebate at the rate of 25%. The AAC observed that the past history of the assessee-company showed that it was a priori ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... for the transmission of electricity. In the result it allowed the department's appeal in this regard and restored the order of the ITO. The main question that arises for consideration before us is whether or not the conduit pipes manufactured by the assessee, which are used for housing electricity cables, can be described as equipment for the transmission of electricity. In common parlance any article which would be required for effectively transmitting electrical energy from one place to another would be considered to be an equipment for the transmission of electricity even though the medium through which the electricity flows or is transmitted is an equipment required for the transmission of energy, but it does not mean that the express ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... es not mean that it ceases to be an equipment for the transmission of electricity. In this regard the object with which and the dominant purpose for the manufacture of such articles and the common use to which they are put has to be considered. While observing that the conduit pipes manufactured by the assessee which are meant for housing the electricity cable, the Tribunal did not refer to any evidence indicating that such conduit pipes are normally used for a purpose other than housing electricity cables. The certificate under s. 10 of the Industries (Development and Regulation) Act, 1951, issued by the Govt. of India to the assessee in the year 1954 also indicates that the Govt. of India considered that the conduit pipes manufactured by ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
