TMI Blog1988 (11) TMI 85X X X X Extracts X X X X X X X X Extracts X X X X ..... of the authorities below, these writ petitions are filed. Brief facts are the following : The petitioner is carrying on business in printing. He undertakes job works such as printing of inland letters, labels, note-books, fancy wrappers, wedding cards, etc., with his offset printing machine. In addition to that, he also purchases raw materials like paper and card-board and converts them into inland letters, note-books, labels, etc., and sells the same. The only ground on which the exemption as claimed by the petitioner was denied by the respondent was that the petitioner's turnover regarding the job works was Rs. 4,61,005 whereas the sale proceeds of his own products was only about Rs. 25,290 and that shows that the petitioner was doing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... we find much force in the arguments of learned counsel appearing for the petitioner. In our view, there is nothing to suggest in that provision that the raw materials must be purchased by the petitioner himself. On the facts, we are satisfied that the assessee is eligible to exemption under section 5(1)(xxxi) of the Act either as a manufacturer or, in any event, as a processor. Section 5 (1) (xxxi) of the Act reads as follows: "5. (1) Subject to the provisions of sub-section (1A), wealth-tax shall not be payable by an assessee in respect of the following assets, and such assets shall not be included in the net wealth of the assessee ... (xxxi) the value, as determined in the prescribed manner, of assets (not being any land or building ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e balance-sheet or share certificates, a commodity or an article quite different from the raw materials from which it is made and the use of which would be different from the use of the raw materials used in producing it. Even if the limited construction of the word 'manufacture' were to be adopted, i.e., transformation and conversion of the materials into a different commodity the raw materials losing their identity, the article produced would still, be a totally different article from the materials, namely, paper and ink, which are consumed in making it. The paper and ink which are used in the process of making pamphlets, balance-sheets or the book, by themselves would be of no value and cannot have apart from the contents a realisable va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng and stitching of the printed sheets would come within the scope of "processing of goods". The learned counsel for the Revenue submitted that this is a case where there are actually no operations of manufacture conducted by the assesseecompany. The printing having been done by a different concern, the question as to whether the assessee has been carrying on the business of manufacture would not arise on the facts here. However, the expression used in section 2(6)(d) is 'manufacture or processing of goods'. Therefore, it is enough if the assessee, in order to get the benefit of this provision, is engaged in the 'processing' of goods. The goods in the present case would be the parts or volumes of Sales Tax Cases. The 'processing' engaged in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... anufactures and produces an article which is distinct from the grey cloth which is used as a raw material. It is immaterial whether the grey cloth which is subjected to the process of dyeing and printing belongs to the assessee or anyone else. The activity which the assessee carries on is manufacturing activity irrespective of the fact whether the grey cloth belongs to it or to its customers. We, therefore, hold that the condition laid down in clause (iii) of section 80J (4) is also satisfied in the case of the assessee." Recently, a Division Bench of this court in CWT v. Angadi Veeriah Chettiar [1987] 167 ITR 341, while considering the scope of section 5(1) (xxxii) of the Wealth-tax Act, has held as follows (headnote): "The assessee wa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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