Case law

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SUMIT JAIN (Querist)
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18 November 2011 whether there is any decided case law -

a firm manufactures candle from paraffin . whether this activity amounts to manufacture or not

Bhaskaran Chackrapani Warrier

Bhaskaran Chackrapani Warrier (Expert)
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18 November 2011 Sec.2(29BA) was inserted with effect from 1.4.2009 in the Income tax Act,1961. It defines ‘manufacture’ to mean a change in a non-living physical object or article or thing (a) resulting in transformation of the object or article or thing into a new and distinct object or article or thing having a different name, character and use; or (b) bringing into existence of a new object or article or thing with a different chemical composition or integral structure. Hence, what is required is that there should be transformation into a new and distinct object or article or thing having a different name, character and use or bringing into existence of a new and definite object or article or thing with a different chemical composition or integral structure. The Hon’ble Supreme Court in ITO vs. Arihant Tiles and Marbles P. Ltd. (2010) 320 ITR 79 held that when marble blocks are cut into slabs, undergo polishing and polished slabs and tiles are produced it amounts to emergence of a new and distinct commodity and activity constituted ‘manufacture or production.

The perspective is ,therefore, candle making from paraffin wax amounts to manufacture.

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SUMIT JAIN

SUMIT JAIN (Querist)
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18 November 2011 i need some more case laws on this

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