2010 (1) TMI 9 - SUPREME COURT

Manufacture - According to the assessee, it uses machinery to convert blank CDs into recorded CDs which along with other processes become a Software Kit. According to the assessee, it is the blank CD in the present case which constitutes raw-material. According to the assessee, the making of this copy from Master Media constitutes manufacture or processing of goods in terms of Section 80IA and consequently assessee is entitled to deduction under that Section – held that - sometimes over-simplified tests create confusion, particularly, in modern times when technology grows each day - software programme may consist of commands which enable the computer to perform designated task, but, the moment copies are made and marketed, they become goods - marketed copies are goods and if they are goods then the process by which they become goods would certainly fall within the ambit of Section 80IA(12)(b) read with Section 33B because an industrial undertaking has been defined in Section 33B to cover manufacture or processing of goods.