TMI Blog2012 (10) TMI 479X X X X Extracts X X X X X X X X Extracts X X X X ..... process of conversion of limestone into lime and lime dust is a manufacturing process - in favour of the assessee - ITA No. 29 of 2008 alongwith ITA No.30 of 2008 & 31 of 2008. - - - Dated:- 4-10-2012 - Mr. Deepak Gupta, And Mr. Rajiv Sharma, JJ. For the appellant: Mr. Vinay Kuthiala, Sr. Advocate with (in all the appeals) Ms. Vandana Kuthiala, Advocate. For the respondent: Mr. Deepak Kaushal, Advocate in ITA No.29 of 2008 Mr. K.D.Sood, Sr. Advocate with Mr. Sanjeev Sood, Advocate in ITA NO. 31 of 2008 Per Deepak Gupta, J.(Oral) 1. These appeals are being disposed of by this common judgment since the following identical questions of law are involved in these appeals: i) Whether on the facts and in the circumstances ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d, by machinery, or by art. The production of articles for use from raw or prepared materials by giving such materials new forms, qualities, properties or combinations, whether by hand labour or machine . 4. In M/s.Sterling Foods v. State of Karnataka and another, 1986 (3) SCC 469, the question for determination before the Apex Court was whether shrimps, prawns and lobsters subjected to processing like cutting of heads and tails, peeling, deveining, cleaning and freezing cease to be the same commodity or become a different commodity. The Apex Court held as follows:- 6. It is clear on an application of this test that processed or frozen shrimps, prawns and lobsters are commercially regarded the same commodity as raw shrimps, prawns and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entity as the original shrimps, prawns and lobsters. 5. This judgment was followed by the Apex Court in Commissioner of Income Tax v. Relish Foods, 1999(237), 59 wherein the same definition was applied to the provisions of the Income Tax Act. 6. A Division Bench of the Madras High Court in Commissioner of Income Tax v. Sacs Eagles Chicory, 2000 (241) ITR 319 dealt with the issue as to what is manufacture . In the case before the Madras High Court, chicory roots were being roasted and then changed it into powder form. The question was whether this amounted to manufacture within the meaning of Income Tax Act. The Madras High Court held as follows:- The fact that the chicory powder is used for consumption in combination with coffee po ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we are here concerned with is whether, in cutting and polishing diamonds, the assessee manufactures or produces articles or things. There can be little difficulty in holding that the raw and uncut diamond is subjected to a process of cutting and polishing which yields the polished diamond, but that is not to say that the polished diamond is a new article or thing which is the result of manufacture or production. There is no material on the record upon which such a conclusion can be reached. 10. A three Judge Bench of the Apex Court in Aspinwall and Co. Ltd. v Commissioner of Income Tax 2001 (251) ITR 323, considered the question whether the process of manufacturing coffee beans from raw berries amounts to manufacture. The Apex Court af ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o as to produce a commercially different article or commodity. That process itself may consist of several processes. The different processes are integrally connected which result in the production of a commercially different article. If a commercially different article or commodity results after processing then it would be a manufacturing activity. The assessee after processing the raw berries converts them into coffee beans which is commercially different commodity. Conversion of the raw berry into coffee beans would be a manufacturing activity. 11. Sh. K.D. Sood, learned senior counsel for the assessee has placed reliance on the judgment of the Apex Court in Lucky Minmat Pvt. Ltd. Vs. Commissioner of Income Tax, 2000 (245) ITR 830 wher ..... X X X X Extracts X X X X X X X X Extracts X X X X
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