9911796707
TMI Blog1981 (2) TMI 113X X X X Extracts X X X X X X X X Extracts X X X X ..... , the assessee was not engaged in the manufacture or production of tyres and tubes as mentioned in the 9th Schedule because it was doing the work of retreading motor vehicle tyres. 3. The assessee went in appeal before the CIT (Appeals) and thereby contended that the assessee-industry was a small scale industry and certified by the Director of Industries and Commerce and, therefore, initial depreciation should have been allowed u/s 32 (1) (vi) of the IT Act, 1961 (hereinafter referred to as the Act). 3A. The CIT (Appeals) did not accept the contention of the assessee, stated above, as he was of the view that under the provisions of s. 32 (1) (vi), initial depreciation was allowable in case of new machinery or plant only if these were ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ition, 1977, page 70, 328, Black's Law Dictionary, 5th Edition, page 1088, Law Lexicon, Vol. I, 2nd Edition, 1977 page 163 which are there on the paper book of the assessee from page 1 to 3. 5A. On the other hand, Shri L.C. Samuel, the ld. Deptl. Rep contends that the retreading of the motor car tyres are nothing else than the repairing or revivification of the old and worn-out tyres and there is no element of production of things in the retreading of such tyres; hence the authorities below were justified in not accepting the claim of the assessee. He relied upon the decisions of the authorities below. However, he contends that the cases relied upon by the assessee are in favour of the revenue. 6. We have heard the rival contentions a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me Court concluded that the context in which the word 'produced' appears in the definition of 'dealer' given in s. 2 (vii) can only mean 'to bring forth, bring into being or existence-to bring (a thing) into existence from its raw materials or elements'. 8. So, from the aforesaid decision, it is clear to us that the production of a thing is there if a thing is brought into existence from its raw material or element through a specific process or doing a specific act on the raw material to change its shape or size, etc. Therefore, it is clear to us that in retreading of the motor car tyres, there is not production of tyres as the raw material or element is missing there. Since the old and worn out tyre is already an article in existence wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not apply to the facts and circumstances of the case. However, when we stated that if the sole of the boot manufactured and sold by the Batas has been torn or removed and the owner of it wants it resole and the resoling is done through the same process by which the boot was originally manufactured or produced, even then, it is a case of repairing of the boot and not at all that of manufacturing or production of the boot, he has nothing to say. 11. Besides, the case of the Bangalore Bench, Bangalore of the Tribunal, relied upon by the assessee is distinguishable. 12. Apart from it, the relief u/s 32 (1)(vi) is to be provided, in accordance with the 9th Schedule of the Act; where the list of things or articles are given and if there is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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