TMI Blog2010 (7) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... THE HON'BLE MR.JUSTICE F.M.IBRAHIM KALIFULLA and THE HON'BLE MR.JUSTICE M.M.SUNDRESH For Appellant: Mr.J.Naresh Kumar, Sr. Standing Counsel for Income-tax Common Judgment (Judgment of the Court was delivered by M.M.SUNDRESH, J.) In view of the common questions of law involved in both the appeals, they have been taken up together for disposal. T.C.(A) No.546 of 2010 pertains to the assessment year 2001-2002 and T.C.(A) No.547 of 2010 pertains to the assessment year 2005-2006 respectively. 2. The orders passed by the Assessing Authority holding that the goods manufactured by the assessees would not cover the entitlement of exemption under Section 80-IB of the Income-tax Act, have been reversed by the Commissioner of In ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng the Edges/Holes/V-Notch. 6. Testing/Inspecting the finished materials for its Electrical as well as Physical properties. 7. Stacking/Packing them as per their Shapes/Sizes and Weight as per Customer's specifications. In this manner, the raw material/semi finished material undergoes any of the above processes and then such processed material is sent to the customer along with the scrap generated during such process. Since the raw material is owned by the customer only the above manufacturing process, comprises our Sales Value". 5. The Assessing Officer has rejected the claim of the assessees for deduction under Section 80-IB of the Act, by holding that inasmuch as the very same raw material is used for the final product and in vie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urt has observed as follows: "Where any particular process is so integrally connected with the ultimate production of goods that but for that process processing of goods would be impossible or commercially inexpedient, that process is one in relation to the manufacture. (Collector of Central Excise V. Rajasthan State Chemical Works (1991) 4 SCC 473). "Manufacture" is a transformation of an article, which is commercially different from the one, which is converted. The essence of manufacture is the change of one object to another for the purpose of making it marketable. The essential point thus is that in manufacture something is brought into existence, which is different from that which originally existed in the sense that the thing prod ..... X X X X Extracts X X X X X X X X Extracts X X X X
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