TMI Blog1979 (1) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances of the case, the Appellate Tribunal was right in law in holding that the assessee was entitled to higher development rebate at 35% under sec. 33(1)(b)(B)(i) ? " The assessee is engaged in the business of purchasing rough castings and supplying the same to the manufacturers of pump-sets, tractors, etc., after machining and polishing them in its factory. It claimed before the ITO deve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Fifth Schedule and, therefore directed development rebate at the rate of 35%. The Revenue went on appeal to the Tribunal. The Tribunal held that item (5) read with item (24) would apply to the assessee's case and, therefore, it confirmed the allowance of development rebate at 35% as granted by the AAC. The Tribunal's order has given rise to the reference of the above question. Item (5) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hinery or plant is installed for the purpose of business of construction, manufacture or production of any one or more of the articles or things specified in the list in the Fifth Schedule. The short question is whether the machinery which produced the items with which we are now concerned has been installed for the purpose of construction or manufacture of the components of item No. (5). In the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hing made from raw materials by the hand, by machinery, or by art, as cloths, iron utensils, shoes, machinery, etc." It was observed at p. 599 : " It seems to us to be unarguable having regard to the meaning of manufacture that the process employed in converting boulders into small chips of stones with the aid of labour and machinery is not a manufacturing process. Surely labour is employed and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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