manufacture
yash doshi
(Querist) 01 August 2008
This query is : Resolved
we have been paying excise duty on the products we produce(through electrical stamping)
since we pay excise duty it is of common understanding that the process of electrical stamping is a manufacturing process because excise is only on manufacturing or production
now our ITO says that in income tax it will not be considered as manufacture and excise act has nothing to do with income tax act
Can such contradictory views be allowed?
in case of dispute should electrical stamping be considered as manufacture?
in case of such contradiction which law should be upheld?
if any of you have any case laws(preferrably of supreme court) relating to such contradictory views of income tax and excise please forward it to me on my e mail id at yash_2687@yahoo.co.in.
thank you
regards
yash doshi
Rajesh Kumar
(Expert) 02 August 2008
Dear Yash,
If the term manufacture has to be defined, the ITO is required follow the definition laid down by the supreme court. The definition of manufacture in Central Excise, in DCM case, Bhor Industries case etc. is based on general parlance theory, which is equally applicable in the matters of Income Tax also.
yash doshi
(Querist) 03 August 2008
thank you Mr. rajesh kumar
regards
yash doshi
