TMI Blog2013 (7) TMI 286X X X X Extracts X X X X X X X X Extracts X X X X ..... the definition of manufacture in the statute book, which was earlier not there. Though the meaning is for the purposes of section 10B, but explanation 4 introduced from 01.04.2004, it says, "for the purpose of this section, "Manufacture or produce" shall include the cutting and polishing of precious and semi- precious stones". This, in effect has rendered the decision of Gem India ineffective. Since the raw material purchased by the assessee & the finished product marketed by it as brought by the assessee for examination it is found that raw material has under gone a major change and value addition and a distinct marketable product assessee is eligible for the claim of deduction under section 80IB. In favour of assessee. - ITA No. 7468/ ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e manufactured material must be different then the raw material, hence, the process done by the assessee, at best could be held to be processing, because the character of the raw material, i.e. wooden boards/plank remain the same. The AO placed reliance on the decisions of Lucky Matemat Pvt. Ltd vs CIT, reported in 226 ITR 245 (Raj), and the case of CIT vs Gem India Manufacturing Co., reported in 249 ITR 307 (SC) and the case of N C Buddhiraja Others, reported in 204 ITR 412 (SC), wherein the concept of manufacture is clarified that there should be different make having different character. 5. The AO, therefore, denied the deduction, as claimed by the assessee. 6. The assessee approached the CIT(A), before whom, the assessee submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... te treatment is put on the back side. Therefore, only after all these process this floor board becomes commercial product. In support of the contention, during the course of Appellate proceeding, Ld. AR has also submitted photo copy of processing of with a view to depict the manufacturing activities and claims that process itself is a complex-one and products carries new nomenclature as Engineering Floor Board which is different from raw material. Further, in support of contention Ld. AR has submitted the copy of purchase order of commanders works Engineer (NW) Naval base, Kochi to show that product name is referred to as "Maple Wood Engineered Floor Board". Further, the purchase order of Gokul Construction Co. Ltd. has been referred to for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht of material available on record. I find that raw material is not a timber or a wood in a raw form but it is like a finished product itself which is a slab and are only cut or sized as per the requirement of the particular floor, may be of squash or badminton court, that itself is therefore, not a manufacturing activity at all. Further, seasoning of the timber slice or plaining of slice from all the sides through machinery is the only processing of a particular item for making it suitable to the requirement of fixation. Further a tongue and groove in slice for assembling to a random length from 1 ft to 3 ft and width of 65 mm is not at all a new thing or articles but it is the adjustment through processing of the same goods as per the spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the help of photograph only reveals the simple processing as briefly mentioned above which cannot be presumed to be a complex manufacturing activities having different character, quality contents and capability. In act such floor board are always subject to re-cutting, smoothing and sizing for meeting out the specification and suiting to the floor area, need a process of installation or fixation. The facts of the case itself proves only some routine process including seasoning of a slab or a board therefore, after thoughtful consideration of the processing and character of end product, I reach to the conclusion that Appellant has only done some processing work for charging the shape and size which is not at all a distinct product. Furth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o examine is whether the end or finished product for the assessee is the same product and whether the assessee could market both of them as one or in substitution of the other. The answer is in the negative. 10. We find that the decisions relied upon by the revenue authorities are distinguishable on facts. In the case of Lucky Matemat (supra), we find that assessee was mining lime stone and selling it, there was neither any manufacturing activity nor any processing involved. Hence, the case is distinguishable on acts. We also find that the decision of Gem India also has now been rendered inapplicable because, the legislature has introduced the definition of manufacture in the statute book, which was earlier not there. Though the meaning i ..... X X X X Extracts X X X X X X X X Extracts X X X X
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