TMI Blog2009 (1) TMI 310X X X X Extracts X X X X X X X X Extracts X X X X ..... hat the assessee who is doing the business of converting the gold bars supplied to the assessee by its foreign customers into gold jewellery of 21 carats and 22 carats and returning the same to the foreign customers was entitled to the benefit of exemption under s. 10B of the IT Act. It was submitted by the learned Departmental Representative that the assessee was doing the business under the name and style of M/s Gold Craft International in the NSEZ area of Noida. The assessee receives raw gold of, 995 purity from foreign parties and after converting the same into jewellery of 22 carats and 21 carats, the same is sent back to the foreign parties from whom the gold is received. The gold is sent to the assessee free of cost and after convers ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... chemical process also involved and the gold is then converted into jewellery after melting and converting into various shapes through mechanical as well as other process which involve physical labour as well as mechanical power. It was his submission that the ownership over the raw material was not an absolute requirement for the purpose of claiming the exemption under s. 10B of the Act. He also relied upon the decision of the Gujarat High Court in the case of CIT vs. J.B. Kharwar Sons (1986) 57 CTR (Guj) 9 : (1987) 163 ITR 394 (Guj) wherein it had been held that the process of dyeing and printing gray cloth produces distinct article and was manufacturing or production for the purpose of the provisions of s. 80J of the Act. He also relied ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce or as earring. After its conversion into jewellery, the same is used for wearing as jewellery. Primary gold is normally used as raw material for making gold jewellery. Primary gold is a raw material and gold jewellery is the finished product. The uses are different. Primary gold is not known under the common parlance as gold jewellery. It is either known as gold, bars or gold ingots. Gold jewellery are never known as gold bars or gold ingots, but are known as gold jewellery itself having different names according to uses. Thus, the two products are distinct and separate. Primary gold is to be put through mechanical and physical process as also chemical process to convert the same into gold jewellery. Primary gold is melted by applying he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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