TMI Blog1999 (9) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... dated order dated June 26, 1980, passed by the said Tribunal in I. T. A. Nos. 476 to 479 for the assessment years 1973-74 to 1976-77. We have heard Shri A. N. Mahajan, learned counsel for the Commissioner-applicant, and Shri Vikram Gulati, learned counsel for the respondent-assessee. The assessee-respondent No. 3 is engaged in the business of civil contractor constructing buildings, runways, etc. It claims to be an "industrial company" within the meaning of section 2(7)(c) of the Finance Act, 1973, to be eligible to a lower rate of tax. In the said provision, the industrial company has been defined as under : "(c) 'industrial company' means a company which is mainly engaged in the business of generation or distribution of electricity ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xtent in which industrial undertaking has been defined under the Finance Act, 1973, the building activity which involves not only the mixing of mortar or cement and the placing of one brick over another with the help of such cement or mortar but also involves the work of fabrication with the help of steel and the making of doors, windows, grills, floors for which in turn the processes involved are mixing of various materials, can be said to amount to processing of goods. The wideness of the scope of this expression can be gauged from the case of CIT v. Commercial Laws of India Pvt. Ltd. [1977] 107 ITR 822 (Mad) where even the folding and stitching of the printed sheets was held to constitute 'processing of goods'. We would, therefore, take ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng any article or goods as is evident from the Tribunal's order. The assessee has restricted its claim to processing of goods as in the construction of the buildings, etc., materials like cement, sand, stone, grits, bricks, steel, timber, etc., are used and processed and, therefore, the activity of the assessee means processing of goods, and, therefore, the assessee though engaged in the business of construction of buildings was actually processing goods, and, therefore, should be treated as an industrial company. Similar controversy had arisen before the Bombay High Court in CIT v. N. U. C. Pvt. Ltd. [1980] 126 ITR 377 in which it was held that the assessee who was engaged in the business of construction and repairs of buildings was not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... trial undertaking within the meaning of the provisions of section 2(7)(c) of the Finance Act, 1982. This case is also distinguishable because the present assessee is not claiming to be manufacturing anything, and as such, the case would fail because of the judgment of the Supreme Court in the two cases referred to above. Reliance has also been placed on the following cases : (i) CIT v. Commercial Laws of India Pvt. Ltd. [1977] 107 ITR 822 (Mad). (ii) CWT v. Jagdish Singh Sekhar [1987] 167 ITR 558 (Patna). (iii) CWT v. Jagphool Narain [1988] 172 ITR 69 (All). (iv) Nu-Look (P.) Ltd. v. CIT [1986] 157 ITR 253 (Delhi). (v) CIT v. Acrow India Ltd. [1991] 188 ITR 485 (Bom). (vi) CIT v. Bhageeratha Engineering Ltd. [1993] 199 ITR 12 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y the Supreme Court is not article or things. What amounts to process can be demonstrated by the judgment of this court in CWT v. Jagphool Narain [1988] 172 ITR 69 (All) in which the assessee was engaged in dyeing and printing white cloth and making sarees therefrom. It was held that this would amount to processing of goods. This ruling supports our thinking that in the case of processing, the goods that are subjected to alleged process must substantially retain their identity. In Nu-Looh (P.) Ltd. v. CIT [1986] 157 ITR 253 (Delhi), the assessee was engaged in preparation of garments and also did tailoring for customers who brought their own cloth and also in manufacturing of garments to be sold as readymade garments. The question was whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ical and physical composition. When the chemical and physical composition of each kind of ore which goes into the blending is changed, there can be no doubt that the operation of blending would amount to 'processing' of ore within the meaning of section 8(3)(b) and rule 13. It is no doubt true that the blending of ore of diverse physical and chemical compositions is carried out by the simple act of physically mixing different quantities of such ore on the conveyor belt of the mechanical ore handling plant. But, to our mind it is immaterial as to how the blending is done and what process is utilised for the purpose of blending. What is material to consider is whether the different quantities of ore which are blended, together in the course o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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