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TMI Blog1999 (3) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... ot correct in holding that 'granite' is a 'mineral' within the meaning of the term found in section 80HHC(b)(ii), Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the assessee is not entitled to the allowance claimed under section 80HHC in respect of the granite exported from India ?" The questions having been answered against it, the assessee is in appeal. There is no material in the finding of the Tribunal other than the indication that the assessee exports granite. The assessee claimed for the granite which it exported the deduction available under section 80HHC of the Income-tax Act, 1961, as inserted by the Finance Act, 1983, with effect from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 0HHC of the Act. As we have already noted, there is nothing on record to indicate that what the assessee exports is such value added granite so that, even assuming that the said circular is explanatory and can, therefore, relate back to the year in question, the assessee cannot derive any assistance therefrom. It is necessary immediately to note that the Mines and Minerals (Regulation and Development) Act covers granite as a minor mineral. This court in State of Mysore v. Swamy Satyanand Saraswati, AIR 1971 SC 1569, has held that granite is a mineral. The court quoted Halsbury's Laws of England thus : "The test of what is a mineral is what, at the date of the instrument in question, the word meant in the vernacular of the mining world ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... itted, based upon this doctrine, that the word "minerals" in section 80HHC should be read in the context of the word "ores" with which it was associated and must draw colour therefrom ; that is to say, it must read as referring only to such minerals as are extracted from ores and not others, thus excluding granite. We agree that the said doctrine is applicable. The word "minerals" in sub-section (2)(b) of section 80HHC must be read in the context of "mineral oil" and "ores" with which it is associated. It seems to us that these words taken together are intended to encompass all that may be extracted from the earth. All minerals extracted from the earth, granite included, must, therefore, be held to be covered by the provisions of sub-secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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