TMI Blog2010 (2) TMI 1188X X X X Extracts X X X X X X X X Extracts X X X X ..... der section 234B of the Act. 3. As regards, the denial of deduction under section 80IB of the Act, Shri Talati submitted that the claim was denied on the ground that the assessee is not engaged in the activity of manufacturing and producing any article or thing explaining the fact, shri Talati submitted that the assessee had established a new Industrial Unit, wherein it was manufacturing and producing Agron Gas by using various machineries and making Argon in the gaseous form so as to render it fit for use by Industries since liquid Argon cannot be used for the Industrial purpose. The process requires mechanical functions at various levels. The Argon Gas manufactured by the appellant is liable to Excise duty under Tariff No.2804.90. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the Learned Commissioner of Income Tax (Appeals) holding that the there was neither any manufacturing nor production through it observed that Argon is prepared by fractional distillation of liquid air. 4. Shri Talati submitted that though the issue is decided against the assessee in earlier year, the same was decided when the definition of word manufacture or production was not found in the statute. Recently, Hon'ble Supreme Court in the case of ITO Vs. Arihant Tiles and Marbles Pvt. Ltd. 221 CTR 513 considered the definition of the word manufacture inserted in section 2(29BA) of the Finance No.2 Act, 2009 with retrospective effect from 1.04.2009, the Hon'ble Supreme Court held :- In the present case, the Court is not only ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1 (SC) and CIT Vs. N.C. Budharaja Co. Anr. (1993) 114 CTR (SC) 420 : (1993) 204 ITR 412 (SC) applied; Lucky Minmat (P) Ltd. vs. CIT (2000) 162 CTR (SC) 404 : (2001) 9 SCC 699, Rajasthan State Electricity Board vs. Associated Industries Anr. AIR 2000 SC 2382 and Aman Marble Industries (P) Ltd. Vs. CCE 2003 (157) ELT (SC) distinguished. If the contention of the Department is to be accepted, namely that the activity undertaken by the respondents herein is not a manufacture, then, it would have serious revenue consequences. Each of the respondents is paying excise duty, some of the respondents are job workers and the activity undertaken by them has been recognized by various Government authorities as manufacture. To say that the activi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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