TMI Blog1998 (10) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... up, roasted and grinded and then sold in the form of powder". It has been contended by the assessee before the ITO that the assessee has erected machinery for the purpose of roasting and grinding and therefore, the assessee was engaged in processing and manufacturing of chicory powder. 3. The ITO and the AAC being of the view that the assessee was only engaged in trading activities and not manufacturing activities, denied the assessee's claim for relief under ss. 80HH, 80-I and 80J which required, inter alia, that the assessee be a manufacturer of goods or articles. The Tribunal, however, relying on the fact that the assessee had been registered as small-scale industry and its claim for being treated as an industry had been accepted unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the goods that emerge as a result of process are distinct and commercially different and that if that test is applied, it must be held that there is in this case a process of manufacture. 6. The learned counsel for the assessee placed reliance of the apex Court in the case of Dy. CST, Board of Revenue vs. Pio Food Packers (1980) 46 STC 63 (SC), where in the apex Court held that the slicing and packaging the pineapple did not amount to manufacture as the commodity remains as a pineapple before and after the process. That was also a case that arose under the ST Act and it was found by the Court that pineapple fruit when processed into pineapple slices for the purpose of being sold in sealed cans, there is no consumption of the original pine ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... visions of the ST Act was adopted by the Supreme Court for determining the meaning of the word 'manufacture' under the Act also in the case of CIT vs. N.C. Budharaja Co. (1993) 114 CTR (SC) 420: (1993) 204 ITR 412 (SC) : TC 25R. 185. 9. The counsel submitted that chicory powder is a commercially different article from chicory roots and that there was a change in identity even though the chicory root may not be said to be consumed in the preparation of chicory powder. Chicory powder being different from chicory root, there was a process of manufacture involved in making of chicory powder. 10. The counsel also referred to the decision of the apex Court in the case of Ganesh Trading Co. vs. State of Haryana (1973) 32 STC 623 (SC), wherei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the process of manufacture and there can be no manufacture without consumption. 12. This Court in the case of State of Tamil Nadu vs. Thiruvalargal Sarathy Chicory has held that chicory roots are not consumed when chicory powder is prepared, it is implicit in that finding that chicory roots and chicory powder have the common identity as chicory. The fact that processing is involved in obtaining chicory powder from chicory root does not inevitably lead to the conclusion that the process is one of the manufacture. If the original identity is not lost even after the process, there is no manufacture. 13. The fact that the chicory powder is used for consumption in combination with coffee powder does not make the chicory powder any different ..... X X X X Extracts X X X X X X X X Extracts X X X X
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