TMI Blog1975 (4) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... The years of assessment are 1967-68, 1968-69 and 1969-70. It was agreed that the assessee was entitled to the development rebate for all the three assessment years. The only question in dispute was whether the rate of such rebate should be 20 per cent. as contended by the department or 35 per cent. as claimed by the assessee. The claim of the assessee was that the rebate at the rate of 35 per cent. as provided in section 33(1)(iii) (c)(A)(a) as it stood at the relevant time should be allowed for the year 1967-68 and not 20 per cent. under section 33(1)(iii)(c)(B)(a). The relevant part of the section is in these terms : " (1) In respect of a new ship acquired or new machinery or plant (other than office appliances or road transport vehi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssed through furnaces and heated. Then they are put to 'ruffing machine' where they are lengthened by about three times and the girth is also reduced by nearly half. Thereafter, they are put through 'finishing mills' where they are further lengthened and the girth is still further reduced to 10 to 12 mm. The resultant product is known as 'M. S. rods' or 'steel section' and these are the commodities which are sold by the appellant." Item (1) in Schedule V reads as follows : " Iron and steel (metal), ferro-alloys and special steels." It is clear that by a manufacturing process the assessee was producing M. S. rods and steel sections. It is not disputed that M. S. rods and steel sections produced from mild steel billets and mild steel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd steel are metals. So by the addition of the word " metal " there is no change of meaning. If, on the other hand, it is taken that by the addition of the word " metal " the result advanced in argument would follow : the entry will get very limited, as being applicable only to the manufacture of iron and steel at the initial stage. We do not think that there is any justification for so limiting the entry. As the Supreme Court has held that bars, flats and plates are " iron and steel ", we have also to hold that M.S. rods and steel sections manufactured by the assessee are " iron and steel ". The addition of the word " metal " within brackets after the words " iron and steel ", we do not think is intended to limit the scope and ambit of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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