9911796707
TMI Blog1983 (7) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... m, boulders, grands, stones, pebbles and several other items along with sand. The said spoil is brought on the platform of the dredger with the help of buckets. On the platform of the dredger, there is a water pump provided where the spoil is unloaded from the buckets and the water pump separates all the components such as mud, stone particles, sand etc. There are separate meases (Jali) provided in the said platform with the result that on washing process being employed the sand and other several items kept separated. The sand so separated is passed on through the passing devise to the barge. When the barge is completely loaded with the sand, the launch pulls it to the bank of the sea and the sand is unloaded there. Thereafter, such sand is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as free getting" as they may be somewhat difficult to dislodge from the apparatus when being discharged. Gravel is often found in dense layers strongly compacted with sand and this together with indunated sand is difficult to disintegrate. With the help of dredger, materials are extracted from the bottom of the sea which are termed as 'spoil'. After following the aforesaid procedure, the sand is separated from other components. Thus it was contended in the present cases, processing is definitely involved. According to the ld. counsel, processing of goods need not lead to manufacture of a new article. It was also contended that production as distinguished from manufacture, is nothing except bringing into existence a product after processing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he requirements of the work in hand. The machines employed by the engineer to that end are termed dredgers and the term dredging plant covers not only the dredging machines themselves but such auxiliary apparatus employed in connection therewith. The word 'Dredging & Dredgers' was defined in the Dictionary Encyclopaedia Britannica 1950 Edn. as under: "Characteristics of materials dealt with. Dredgers have been constructed to deal with, in varying degrees of efficiency, with anything from mud to rock. The materials when removed from the bottom are termed spoil and naturally occur in endless variety of kinds and mistree of kinds. In general, however, the natural barins of alluvial deposits forming the rivers and boys in which harbour and ot ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o a process or treatment with a view to its "development or preparation for the market", it would amount to processing of the commodity within the meaning of s. 8(3)(b) and r. 13. The processing may be light and in another it may be extensive; but with each process suffered, the commodity would experience a change. Whether a commodity undergoes a change as a result of some operation performed on it or in regard to it, such operation would amount to processing of the commodity. The nature and extent of the change is not material. The question is not whether there is manual application of energy or there is application of mechanical force. Whatever be the means employed for the purpose of carrying out the operation, it is effect of the operat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... evented. That would amount to processing the goods, that is to say, preservation, applying a method to the goods whereby the goods were prevented from taking their normal course. Therefore, in the context of the statute which had used the expression "processing" in contradistinction or differently from the expression 'manufacture' the assessee-company was engaged in the act of processing the goods in terms of the Finance Act, at the relevant time. 9. In the present cases, the firm is owning a dredger and barges. With the help of the said dredger, the combined materials are extracted from the bottom of the sea, which are termed as Spoil. The said spoil consists of endlem of many kinds of articles and mixtures consisted of mud, clay, loam, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tled to exemption u/s 5(1)(xxxii) in respect of their interest in the said firm. According to the ld. counsel, on this point the ld. AAC gave no finding. The ld. counsel further contended that the ITO himself held in the asst. yr. 1973-74, that the assessee firm M/s Y.A. Chunawalla &Co was doing business of manufacture of bricks and tiles. A copy of the assessment order is in the paper-book. Even otherwise, it was contended that in the business of manufacture of bricks and tiles, manufacturing and processing are involved. Thus, it was contended that the partners may be granted exemption u/s 5(1) (xxxii) in respect of their interest in the said firm. 12. The ld. Departmental representative has no objection on the basis of the material on r ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
