Home Case Index All Cases Income Tax Income Tax + SC Income Tax - 2017 (8) TMI SC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2017 (8) TMI 197 - SC - Income TaxEligibility to benefit of Sections 80HH, 80-I and 80-IA - whether bottling of LPG is an activity which amounts to ‘production’ or ‘manufacturing’ for the purposes of the aforesaid provisions of the Act - Held that:- No distinction was drawn between manufacture and production and the matter was not looked into from the angle as to whether the aforesaid process would amount to production or not. Other reason which prevailed with the AO and which was also the argument of for the Revenue was that, on identical facts, the Gujarat High Court in the case of State of Gujarat v. Kosan Gas Company (1991 (6) TMI 226 - GUJARAT HIGH COURT) had held that refilling the LPG after purchasing from M/s. HPCL into small cylinders would not amount to manufacture. That was a case which was decided in the context of the Gujarat Sales Tax Act, 1969. The Court held that transfer of LPG from bulk containers into cylinders did not amount to process of manufacture. It is pertinent to point out that Section 2(16) of the Gujarat Sales Tax Act, 1969 defines ‘manufacture’ and, therefore, the entire case was examined keeping in view the said definition of ‘manufacture’ and the issue was as to whether the process amounted to manufacture or not. As pointed out above, the question as to whether it amounts to ‘production’ as well did not arise for consideration. The AO committed manifest error in relying upon the said decision inasmuch as the provisions with which we are concerned in the instant case use the words ‘manufacture or production’ and are not limited to ‘manufacture’ alone. Here, the case set up by the assessees is not that bottling of LPG is ‘processing’ as distinguished from ‘manufacture’ or ‘production’. We may, at this juncture, refer to the judgment of this Court in Commissioner of Income Tax, Madras v. Vinbros and Company (2012 (9) TMI 802 - SUPREME COURT) where bottling and blending of alcohol is held to be ‘manufacture or production’ for the purpose of Section 80-IB of the Act. - Decided in favour of assessee.
|