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TMI Blog2024 (8) TMI 691X X X X Extracts X X X X X X X X Extracts X X X X ..... ergoing the process indicated above certainly results in emergence of a new and distinct commodity. The original block does not remain the marble block, it becomes a slab or tile. In the circumstances, not only there is manufacture but also an activity which is something beyond manufacture and which brings a new product into existence and, therefore, on the facts of these cases, we are of the view that the High Court was right in coming to the conclusion that the activity undertaken by the respondents-assessees did constitute manufacture or production in terms of section 80-IA of the Income-tax Act, 1961. Activity will not amount to manufacture or production under Section 80-IA will have disastrous consequences, particularly in view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... al filed by the Department was accepted by the tribunal vide order dated 29.08.2008, hence the present appeal. 3. While admitting the appeal on 07.09.2012, following substantial question of law was formulated:- "i. Whether the expression 'production' used under Section 80IB of the Income-tax Act, 1961 in which expressions 'manufacture' and 'production' both have been used are synonyms with each other or the word 'production' has a wider meaning than 'manufacture' so as to include within the preview, an activity, which may not amount of 'manufacture' but may still amount to 'production' as held in the case of Arihant Tiles & Marbles (P) Ltd. Vs. ITO, (2007) 211 CTR (Raj.) 169, following the decision in CIT Vs. Sesa Goa Ltd., (2004) 271 IT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion of the Department is to be accepted, namely that the activity undertaken by the respondents herein is not a manufacture, then, it would have serious revenue consequences. As stated above, each of the respondents is paying excise duty, some of the respondents are job workers and the activity undertaken by them has been recognised by various Government Authorities as manufacture. To say that the activity will not amount to manufacture or production under Section 80-IA will have disastrous consequences, particularly in view of the fact that the assessees in all the cases would plead that they were not liable to pay excise duty, sales tax etc. because the activity did not constitute manufacture. Keeping in mind the above factors, we are of ..... X X X X Extracts X X X X X X X X Extracts X X X X
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