Itxa/348/2011 Of The Commissioner Of Income Tax - 14 Mumbai v. Hindustan Essential Oil Co

sas IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.348 OF 2011 The Commissioner of Income Tax-14, Mumbai ..Appellant. V/s. M/s. Hindustan Essential Oil & Co. ..Respondent. Mr. D.K. Kamwal for the appellant. Mr. Jitendra Jain with Jas Sanghavi i/b. PDS Legal for the respondent. CORAM : J.P. DEVADHAR AND A.R. JOSHI, JJ. DATED : 13TH JANUARY, 2012 P.C. :- 1.Whether the blending activity carried out by the assessee is manufacturing activity so as to avail deduction under Section 10B of the Income Tax Act, 1961, is the question raised in this appeal. 2.The CIT(A) as well as the ITAT have held that the activity carried out by the assessee constitutes manufacture on which excise duty is payable, however, the assessee being a 100% EOU is exempted from payment of excise duty. Moreover, the Apex Court in the case of 2 itxa348-11 CIT V/s. Zandu Pharmacceuticals Works Ltd. reported in (2006) 12 Supreme Court Cases, 453 has held that the addition of perfume in hair oil constitutes manufacturing process. Therefore, in the present case, the decision of the ITAT that the process of producing 'attar' results into a distinct marketable product and hence eligible for Section 10B deduction cannot be faulted. In this view of the matter, we see no merit in the appeal and the same is dismissed with no order as to costs. (A.R. JOSHI, J.) (J.P. DEVADHAR, J.)