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TMI Blog1993 (2) TMI 311X X X X Extracts X X X X X X X X Extracts X X X X ..... al production by the applicant was Rs. 9,83,351.35, which was below rupees ten lakhs. Accordingly the Assistant Commissioner did not consider the unit as a "newly set up industrial unit" for the purpose of section 10F. The present application is also directed against order dated December 20, 1991 passed by the Additional Commissioner in a revision preferred by the applicant against the aforesaid order of the Assistant Commissioner. The revision petition was rejected by the Additional Commissioner holding that the cost of main switch, welding transformer, drill stand and grinder were rightly excluded from the amount of investment of fixed assets. The case of the applicant is that it is a registered partnership firm carrying on business of m ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he limit of rupees ten lakhs. The decision was affirmed by the Additional Commissioner in his revisional order. Hence this application. The application has been resisted by the respondents. Their case in the affidavit-in-opposition is that welding transformer, drill stand and grinder are tools for maintenance of machines and are not required for production which is done by the strander and rope twisting machines. Same is the view of the respondents with regard to the drilling machine. According to them, the grinder which is used for smoothening the ropes cannot be said to be a machine directly used for manufacture. Mr. Sumit Chakraborty, learned Advocate for the applicant, has referred to a scheme called the State Scheme of Incentives for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 92] 85 STC 239, J.K. Cotton Spinning & Weaving Mills Co. Ltd. v. Sales Tax Officer, Kanpur [1965] 16 STC 563 and Member, Board of Revenue, West Bengal v. Phelps and Co. (P) Ltd. [1972] 29 STC 101 and also a decision of the Andhra Pradesh High Court reported in Commissioner of Incometax v. Sri Krishna Bottlers Pvt. Ltd. [1989] 175 ITR 154 at page 169 in order to support his contention that the welding and drilling machines and other tools and machines left out by the Assistant Commissioner and the Additional Commissioner ought to be treated as plant and machinery or productive equipment for the purpose of section 10F. Mr. T.N. De, the learned State Representative, has opposed the contentions of Mr. Chakraborty and has tried to distinguish th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... residential portion thereof and factory shed erected by him and cost of new plant and machinery including the productive equipment, installed or acquired by him on or before the date of first commercial production in such unit. There are certain differences between this definition in section 10F and the explanation to rule 3(66a) of the Bengal Sales Tax Rules, 1941, for instance, under that rule the value of land and building and cost of generator and mould should be excluded from the investment. In any case, since definitions have been provided in section 10F itself the interpretation should follow those definitions for the purpose of section 10F. As regards the grinder, we have no manner of doubt that it is directly used in manufacture, a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uipment". According to us, even if the welding and drilling machines are not directly used in manufacture in the sense that they do not directly manufacture ropes, they are nevertheless plant and machinery and therefore they are liable to be considered at the time of estimating the gross value of fixed assets for the purpose of deciding whether the benefit under section 10F should be extended to the applicant. In other words, in our view the grinder and the main switches are productive equipment and, therefore, they come under plant and machinery. According to us, the welding and drilling machines come under the wider expression "plant and machinery" in section 10F. That being our view, the total investment in fixed capital assets in terms ..... X X X X Extracts X X X X X X X X Extracts X X X X
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