TMI Blog2013 (3) TMI 376X X X X Extracts X X X X X X X X Extracts X X X X ..... pplying to them processes such as cutting or turning. The rod or the wire rods are likewise not products of iron and steel but only certain finished or refined forms of the metal itself & CIT Vs. Gem India Manufacturing Company [2000 (12) TMI 7 - SUPREME COURT] wherein held that cutting and polishing of diamond does not amount to manufacture and industrial undertaking is not entitled to the benefits of Section 80-I This court in Commissioner of Sales Tax Vs. M/S Tata Iron and Steel Co. Ltd. [1974 (9) TMI 83 - ALLAHABAD HIGH COURT] and Commissioner of Sales Tax Vs. M/S Om Engineering Works [1985 (11) TMI 220 - ALLAHABAD HIGH COURT] and Supreme Court in Gujarat Steel Tubes Ltd. Vs. State of Kerala [1989 (5) TMI 62 - SUPREME COURT OF INDIA] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e the fact that in the assessment year 1990-91, the issue was restored to the file of the A.O. For fresh adjudication of the case and whether this tantamount to review of it's earlier order? (2) Whether on the facts and circumstances of the case, the Tribunal is justified in treating the assessee as engaged in manufacturing and allowing deduction u/s 80-I in as much as the assessee company is engaged in processing of MS Pipe after coating with zinc and not manufacturing?" 2. These appeals relate to the assessment years 1991-92, 1992-93 and 1995-96. M/S Aggarwal Tube (P) Ltd. (the assessee) is engaged in the business of galvanizing the mild steel pipes (MS pipes). For the assessment year 1991-92, the assessee filed it's return, un ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... le or thing and the assessee was not entitled to the benefits under Section 80-I of the Act. 4. The assessee again filed an appeal from the aforesaid order before the Tribunal, who by the impugned order, relying upon the previous order of the Tribunal in the matter of the assesssee for the assessment year 1990-91, in which it was held that raw material used by the assessee is MS pipes and product of the assessee is GI pipes as such plant and machinery of the assessee was not involved in manufacture of an article or thing and it was entitled to the benefits under Section 80-I of the Act, provided benefits of Section 80-I to the assessee. Hence this appeal has been been filed by the Revenue. Since all the appeals were decided by a common ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the Supreme Court in CIT v. Krishna Copper Steel Rolling Mills, AIR 1992 SC 422, in which it was held as follows:- "The Finance Act of 1964 decided to grant a rebate in the corporation tax payable by companies in order to encourage development of certain industries which occupy an important place in our economy, the list of industries named in the Finance Act was similar to and included many of the items, including Items 1 to 3, of the list we are concerned with now. The reliefs were given to strengthen the reserves and augment the capacity of the corporate sector to develop. This process was continued under the Finance Act of 1965 which introduced a higher development rebate for machinery or plant installed for the purposes of cons ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " forms of iron and steel. Having regard to the nature and weight of the metal, it has to be "finished" to assume these forms before manufacturers of iron and steel articles can take over and proceed to manufacture articles from them by drawing wires or converting them into rails or shaping them into tees, zees, pipes, tubes and the like or, again, producing articles of iron like ploughs, shovels, pickaxes, lathes, blowers, surface guiders and drills. 9. Whether the article produced is the raw material or an article made of iron and steel has to be decided on the basis of the nature of the article and not the kind of mill which turns it out. It is significant that these items do not draw a distinction between basic steel mills, integ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we have already stated, that the goods in the present case fall in the former category. We think Sri Ramachandran is right in pointing out that the mild steel rods, bars or rounds which are manufactured by the assessees here are only finished forms of the metal and not articles made of iron and steel. They only constitute raw material for putting up articles of iron and steel such as grills or windows by applying to them processes such as cutting or turning. The rod or the wire rods (with which some of the decisions were concerned) are likewise not products of iron and steel but only certain finished or refined forms of the metal itself." 8. Supreme Court again in CIT Vs. Gem India Manufacturing Company, (2001) 10 SCC 733 held that cut ..... X X X X Extracts X X X X X X X X Extracts X X X X
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