TMI Blog2014 (1) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... UPREME Court] - producing different varieties of masala using different spices as inputs would amount to manufacturing and such a process is eligible for deduction under section 80-IB of the Act - manufacturing different masala powders amounts to manufacturing activity – Decided against Revenue. - I.T.A No. 473/Coch/2011 - - - Dated:- 12-4-2013 - Shri N.R.S. Ganesan and Shri B.R. Baskaran, JJ. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from different sister concerns mixing them in its unit and selling them as masala powders. Referring to provisions of section 80-IB(2)(iii) of the Act, the learned Departmental representative submitted that for claiming deduction, the taxpayer shall manufacture or produce any article or thing. Since the taxpayer is merely mixing the powder it cannot be considered to be a manufacturing activity. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... are also roasted separately. Thereafter, it would lead to natural cooling. The learned representative further submitted that after cooling, the powders are sent to a Hopper and then to a blender. The blended materials are collected in bags and they are separated for vegetarian and non-vegetarian products. Finally the products are packed both manually and mechanically. Referring to the flow chart f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... We have considered the rival submissions on either side and also perused the material available on record. The question that arises for consideration is whether manufacturing masala products amounts to "manufacture" so as to claim deduction under section 80-IB of the Act. This issue was examined by the Mumbai Bench of this Tribunal in Empire Spices and Foods Mumbai Ltd. [2010] 188 Taxman 36 (Mum- ..... X X X X Extracts X X X X X X X X Extracts X X X X
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