TMI Blog1988 (6) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... Income-tax Act, 1961, i.e., 'industrial and agricultural machinery' ?" The relevant assessment years are 1976-77 and 1977-78. The question in short is whether the machinery of the assessee employed for manufacturing leaf springs can be held to be machinery installed for the purpose of manufacture or production of any one or more of the articles or things specified in items Nos. 1 to 24 in the Ninth Schedule to the Act, in particular in the manufacture or production of "(8) industrial and agricultural machinery" within the meaning of clause (vi) of sub-section (1) of section 32 of the Income-tax Act. (It may be noted that this clause has since been omitted by the Taxation Laws (Amendment and Miscellaneous Provisions) Act, 1986, with effect f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... estion, viz., whether a particular thing is "machinery" or not, must, to a large extent, depend upon the special facts of each particular case, and that no exhaustive definition is possible or advisable. All the same, they observed as follows (at p. 32) : "If their Lordships were obliged to run the hazard of the attempt they would be inclined to say that the word 'machinery' when used in ordinary language prima facie means some mechanical contrivances which by themselves or in combination with one or more other mechanical contrivances, by the combined movement and interdependent operation of their respective parts generate power or evoke, modify, apply or direct natural forces with the object in each case of effecting so definite and spec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not possible for any textile mill to run according to the modern technique. Again, applying the definition evolved by the Privy Council in the aforesaid case, it was held that "humidifiers" are machinery. The reasoning behind the said conclusion appears from the following observations (at p. 384) : "Manufacture of goods means the process of converting raw materials into finished goods and whatever machinery is required for converting raw materials into finished goods would be machinery used in the manufacture of such goods. Every item of machinery which has a use in the manufacture of finished goods, which plays some role in the process of manufacture of finished goods and without which manufacture of finished goods would not be possi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ica Wood Works v. State of Gujarat [1979] 43 STC 338, again a decision of the Gujarat High Court, it was held that "screen printing block tables" of wood manufactured by the assessee and sold to textile mills are "machinery". It was found that the wooden tables supplied by the assessee, 42 metres in length and 60 inches in width covered with buff leather, were fixed on the site to facilitate even printing on the cloth. It was found that the tables were brought in loose condition and assembled on the site by the suppliers. Steam pipes were fitted below the tables so as to supply the necessary heat for purposes of drying the prints instantaneously. It was also found that there was a machine for mixing colours mechanically so as to obtain the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... lorry or a car is machinery ? If we can call it machinery, any and every part of it would also be called machinery. Applying the test of common parlance, we find it difficult to say that a truck or a car is machinery. The other basis upon which the question can be approached is, whether "leaf springs" are contrivances. It is difficult to say that a leaf spring can be called a contrivance, much less does it satisfy the various requirements mentioned in the definition. A leaf spring by itself does not generate power, nor is it capable of evoking, modifying, applying or directing natural forces, within the meaning of the said definition. It is only meant to take the load and to cushion the bumps and shocks which a vehicle takes during its, mo ..... X X X X Extracts X X X X X X X X Extracts X X X X
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