The Commissioner Of Income Tax -2 v. Patel Stationers Pvt.ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION I.T.X.A.NO. 4924/2010 The Commissioner of Income Tax -2 Vs. Patel Stationers Pvt.Ltd. Appellant Respondent Mr.Vimal Gupta for the AppellantMr.Dastur,Sr.Counsel a/w Mr.P.J.Pardiwala ,Sr.Counsel and Mr.A.K.Jasani for the for respondent. P.C. CORAM- J.P.DEVADHAR ,AND MRS.MRIDULA BHATKAR,JJ.DATE -21ST FEBRUARY,2011 .The only question raised in this appeal is whether the Tribunal was justified in holding that the assessee was engaged in the manufacture of NC.Lacquer and hence eligible for deduction under Section 80 IA/80 IB of the Income Tax Act . The Tribunal has recorded a finding of fact which reads thus :- “ 4.5 (ii) At SI-2 NC Lacquer is manufactured. For manufacturing NC Lacquer raw material used is N.C.Cotton Ethyl Acetate SCO. Detailed process of manufacturing of Lacquer was submitted by the assessee during assessment proceedings. The raw materials undergo many a processes before they can be called finished product. Once raw materials undergo various process they takes a definite shape and physical and chemical properties of the said raw materials change forever and they cannot be restored back to their original position. The raw materials lose their original identity and individuality and the end-product is known by a new identity. End products is used, sold and bought in the market by new name and it is physically and chemically different from the original raw materials. In other words the end-products are result of various processes that change their basic structures.” 2Thus, the raw materials are subject to a process to obtain NC Lacquer which is a distinct marketable commodity. Even under the Central Excise Law NC Lacquer is a distinct product classified under different heading than the raw materials . 3In this view of the matter no fault can be found in the decision of the Tribunal. The appeal is dismissed accordingly. No costs.