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TMI Blog2012 (10) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... tions of law are involved in these appeals: "i) Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was right in law in holding that converting limestone into limestone powder was a manufacturing activity and income derived from such activity was thus eligible for deduction u/s 80IA/80IB of the Income Tax Act, 1961? ii) Whether on the facts and in the circumstances of the case, the Hon'ble Tribunal was right in relying on the judgment of Hon'ble Supreme Court in the case of M/s. Lucky Minmat Pvt. Ltd. vs. CIT (2000) 245 ITR 830 wherein only an observation has been made by the Hon'ble Court to the effect that conversion into lime and lime dust or concrete by stone crushers could be considered to be a manufacturi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , prawns and lobsters are commercially regarded the same commodity as raw shrimps, prawns and lobsters. When raw shrimps, prawns and lobsters are subjected to the process of cutting of heads and tails, peeling, deveining, cleaning and freezing, they do not cease to be shrimps, prawns and lobsters and become another distinct commodity. They are in common parlance known as shrimps, prawns and lobsters. There is no essential difference between raw shrimps, prawns and lobsters and processed or frozen shrimps, prawns and lobsters. The dealer and the consumer regard both as shrimps, prawns and lobsters. The only difference is that processed shrimps, prawns and lobsters are ready for the table while raw shrimps, prawns and lobsters are not, but s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... - "The fact that the chicory powder is used for consumption in combination with coffee powder does not make the chicory powder any different in so far as its identity is concerned, as chicory. Chicory powder is chicory in powder form and nothing else. Mere change in the form of the same commodity does not necessarily involve change of identity. The pineapple fruit when plucked from the tree and even after it is cut into pineapple slices retains the same identity as pineapple. Chicory powder and chicory root have the common identity of being chicory. The change in the form to powder in the case of chicory and to slices in the case of pineapple does not result in a change of identity." 7. It would be pertinent to mention here that this deci ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ufacturing coffee beans from raw berries amounts to manufacture. The Apex Court after making reference to the Encyclopedia Britannica held that coffee is a beverage made from roasted seeds (beans) of the coffee plant and found that the process of coffee into roasted coffee went through nine processes. Firstly the coffee was dried in the sunlight. Then the outer husk of the coffee been was removed, if necessary, by mechanical operation. The coffee seeds were then extracted and polishing was done. Thereafter, gradation was done where the good coffee was separated by mechanical as well as manual grading. The Court held that net product is absolutely different and separate from the input. The Apex Court held as follows:- "Adverting to facts ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ucky Minmat Pvt. Ltd. Vs. Commissioner of Income Tax, 2000 (245) ITR 830 wherein the Apex Court has held as follows:- "The conversion into lime and lime dust or concrete by stone crushers could legitimately be considered to be a manufacturing process while the mere mining of limestone and marble and cutting the same before it was sold in the market could not be so considered." 12. According to Sh.Vinay Kuthiala, learned senior counsel for the revenue, this observation is only obiter dicta and is not the ratio of the decision and the question whether an activity amounts to manufacture or not is to be decided in the facts of each case. 13. As far as conversion of limestone into limestone powder is concerned, The Apex Court has clearly held ..... X X X X Extracts X X X X X X X X Extracts X X X X
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