Empire Industries Ltd. v. Union of India

3 SCC 314Supreme Court of India1985#3136 most cited

What is Empire Industries Ltd. v. Union of India authority for?

For an activity to be considered 'manufacture', it must result in a transformation where a new and different article emerges with a distinctive name, character, or use.

38

judgments rely on this decision, according to BharatTax’s citation analysis of 366,418 Indian tax judgments — from 2003 to 2026.

Also referred to as

Empire Industries Ltd. v. Union of India · manufacture · new article · distinctive character · transformation · business activity · section 80-IA · section 80-IC · section 2(29BA)

Also reported as

162 ITR 846

Sections most often in play

Section 80-IA(8)/(10)Section 80-ICSection 2(29BA)

Issues it is cited on

section 2(29ba)section 32asection 80icsection 80ichildsection 32section 80transfersection 15companyindiabusiness

Judgments citing Empire Industries Ltd. v. Union of India

M/S. Ujjal Transport Agency, Asansol vs. D.C.I.T., Central Circle-Xvi, Kolkata

In the result, assessee's CO is partly allowed”

ITA 1601/KOL/2014[2007-2008]Status: DisposedITAT Kolkata14 Jul 2017AY 2007-2008

Bench: Hon’Ble Shri A.T.Varkey, Jm & Shri M.Balaganesh, Am ] I.T.A No. 1601/Kol/2014 Assessment Year : 2007-08 M/S Ujjal Transport Agency, -Vs- Dcit, Central, Circle-Xvi, Kolkata G.T.Road(East), Murgasole Asansol Pan : Aaafu 6732 H] (Respondent) (Appellant) For The Appellant : A. K. Tibrewal, Fca Amit Agarwal, Adv. For The Respondent : None Date Of Hearing : 11.07.2017 Date Of Pronouncement : 14.07.2014 Order

For Appellant: A. K. Tibrewal, FCAFor Respondent: None
Section 143(1)Section 147Section 148Section 153ASection 263Section 32(1)(iia)

…Act treats the raising of coal or other minerals as manufacture or production of an article or thing. Further, in Aluminium Corpn. of India Ltd. v. Coal Board AIR 1959 Cal. 222, approved by the Supreme Court in Empire Industries Ltd. V. Union of India [1986] 162 ITR 846, it has been held that raising of coal, even if it did not amount to manufacture, was certainly production of an article. In the instant case, coal was not there to start with. With human skill and labour it had to be raised from the mines and made fit for consumption or for marketing. Such process of raising the coal amounted to production of t…

DCIT, New Delhi vs. M/S. Mehta Print Arts Pvt. Ltd., New Delhi

In the result, the appeal of the department is dismissed

ITA 550/DEL/2014[2007-08]Status: DisposedITAT Delhi30 May 2017AY 2007-08

Bench: Sh. N. K. Saini, Am & Smt. Beena A. Pillai, Jm Ita No. 550/Del/2014 : Asstt. Year : 2007-08 Deputy Commissioner Of Income Vs M/S Mehta Print Arts Pvt. Ltd., Tax, Circle-6(1), E-27, Basement, Naraina Vihar, New Delhi New Delhi-110028 (Appellant) (Respondent) Pan No. Aaaco8042K Assessee By : Sh. Pranshu Goel, Ca & Ms. Priyanka Mongia, Ca Revenue By : Sh. Rajesh Kumar, Sr. Dr Date Of Hearing : 23.05.2017 Date Of Pronouncement : 30.05.2017 Order Per N. K. Saini, Am:

For Appellant: Sh. Pranshu Goel, CA &For Respondent: Sh. Rajesh Kumar, Sr. DR
Section 143(1)Section 143(3)Section 154

…ing but manufacture/production of an article or thing. 5. The reliance was placed on the following case laws: " CIT Vs Delhi Press Patra Prakashan Ltd. (2013) 253 CTR 260 (Del.) " Kadarkarai V CWT (1988) 176 ITR 121, (Mad. HC) " Empire Industries Ltd. (1986) 162 ITR 846 (SC) " Aspinwall Vs CIT 251 ITR 323 (SC) " CIT Vs Commercial Law of India 107 ITR 822 " CIT Vs Datacons 155 ITR 66 " CIT Vs Oswal 223 ITGR 735 " CIT Vs Computterised Accounting 235 ITR 502 " CIT Vs Technotive Eastern 255 ITR 253 " CIT Vs Oracle Software India (SC) CA No. 235/2010 @ SLP(C) No. 4719/2008 6. The ld. CIT(A) after considering the subm…

M/S A.P. Processors, Delhi vs. ITO, New Delhi

In the result, ITA No.4345/Del/2015 of the assessee is partly allowed for

ITA 4346/DEL/2015[2010-11]Status: DisposedITAT Delhi21 Oct 2016AY 2010-11

Bench: Smt Diva Singh

Section 32(1)(iia)

…ucer of an article or thing and it is only doing job work. The appellant brought to the notice of AO that Hon’ble Supreme Court has held that textile dyeing and printing has been held to be manufacturing in the case of Empire Industries Ltd. vs Union of India 162 ITR 846 (S.C). Thereafter, the Hon’ble Supreme Court in the case of Ujagar Prints vs: UOI & Anr. has reconfirmed the same. The issue of job work is also seen to be covered in favour of the assessee by the judgment of the jurisdictional Delhi High Court in the case of CIT vs. Northern Aeromatics Ltd. (2005) 196 CTR (Del) 479. The above decision has been f…

M/S A.P. Processors, Delhi vs. ITO, New Delhi

In the result, ITA No.4345/Del/2015 of the assessee is partly allowed for

ITA 4345/DEL/2015[2009-10]Status: DisposedITAT Delhi21 Oct 2016AY 2009-10

Bench: Smt Diva Singh

Section 32(1)(iia)

…ucer of an article or thing and it is only doing job work. The appellant brought to the notice of AO that Hon’ble Supreme Court has held that textile dyeing and printing has been held to be manufacturing in the case of Empire Industries Ltd. vs Union of India 162 ITR 846 (S.C). Thereafter, the Hon’ble Supreme Court in the case of Ujagar Prints vs: UOI & Anr. has reconfirmed the same. The issue of job work is also seen to be covered in favour of the assessee by the judgment of the jurisdictional Delhi High Court in the case of CIT vs. Northern Aeromatics Ltd. (2005) 196 CTR (Del) 479. The above decision has been f…

M/S Ilc Industries Ltd., Hospet vs. DCIT, Bangalore

In the result, the appeal filed by the assessee is dismissed

ITA 1009/BANG/2015[2007-08]Status: DisposedITAT Bangalore20 Sept 2016AY 2007-08

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Zain Ahmed Khan, CAFor Respondent: Shri Sanjay Kumar, CIT(DR)
Section 143(3)Section 263Section 40aSection 80Section 80H

…Secondly, whether the commodity which was already in existence will serve no purpose but for the said process. Applying the two-fold test, it was held that printing on bottles does not amount to manufacture. In Empire Industries Ltd. v. Union of India [1986] 162 ITR 846 (SC) confirmed by a Constitution Bench in Ujagar Prints v. Union of India [1989] 179 ITR 317 (SC), (see also Chowgule and Co. Private Ltd. v. Union of India [1981] Tax LR 2929 (SC), it has been observed that whatever may be the operation, it is the effect it has on the commodity that is material for the purpose of determining whether the operatio…

M/S Ilc Industries Ltd., Hospet vs. DCIT, Bangalore

In the result, the appeal filed by the assessee is dismissed

ITA 1008/BANG/2015[2004-05]Status: DisposedITAT Bangalore20 Sept 2016AY 2004-05

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Zain Ahmed Khan, CAFor Respondent: Shri Sanjay Kumar, CIT(DR)
Section 143(3)Section 263Section 40aSection 80Section 80H

…Secondly, whether the commodity which was already in existence will serve no purpose but for the said process. Applying the two-fold test, it was held that printing on bottles does not amount to manufacture. In Empire Industries Ltd. v. Union of India [1986] 162 ITR 846 (SC) confirmed by a Constitution Bench in Ujagar Prints v. Union of India [1989] 179 ITR 317 (SC), (see also Chowgule and Co. Private Ltd. v. Union of India [1981] Tax LR 2929 (SC), it has been observed that whatever may be the operation, it is the effect it has on the commodity that is material for the purpose of determining whether the operatio…

M/S Ilc Industries Ltd., Hospet vs. DCIT, Bangalore

In the result, the appeal filed by the assessee is dismissed

ITA 767/BANG/2014[2007-08]Status: DisposedITAT Bangalore20 Sept 2016AY 2007-08

Bench: Shri Vijay Pal Rao & Shri Inturi Rama Rao

For Appellant: Zain Ahmed Khan, CAFor Respondent: Shri Sanjay Kumar, CIT(DR)
Section 143(3)Section 263Section 40aSection 80Section 80H

…Secondly, whether the commodity which was already in existence will serve no purpose but for the said process. Applying the two-fold test, it was held that printing on bottles does not amount to manufacture. In Empire Industries Ltd. v. Union of India [1986] 162 ITR 846 (SC) confirmed by a Constitution Bench in Ujagar Prints v. Union of India [1989] 179 ITR 317 (SC), (see also Chowgule and Co. Private Ltd. v. Union of India [1981] Tax LR 2929 (SC), it has been observed that whatever may be the operation, it is the effect it has on the commodity that is material for the purpose of determining whether the operatio…

CIT-7

ITA/190/2015HC Delhi09 Dec 2015
Section 260ASection 32Section 32(1)(iia)

…d that 'manufacture' implies a change, but every change is not manufacture "and yet every change in an article is the result of treatment, labour and manipulation.” Reliance was placed on the decision in Empire Industries Limited v. Union of India (1985) 3 SCC 314 to urge that there must be a transformation and that a new and different article must emerge, having a distinctive name, character or use. Further in Union of India v. J.G. Glass Industries Limited (1998) 2 SCC 32 a two-fold test was laid down. It was held that printing on bottles did not amount to manufacture. Reliance was also placed on the…

Nalwa Steel & Power Ltd., New Delhi vs. Addl. CIT, New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 2707/DEL/2009[2005-06]Status: DisposedITAT Delhi18 Nov 2015AY 2005-06

Bench: Shri A.T. Varkey & Shri O.P. Kant

For Appellant: Shri V.K. Tulsiyan, CAFor Respondent: Shri P. Dam Kanunjna, Senior DR
Section 115JSection 142(1)Section 143(1)Section 143(2)Section 143(3)Section 14ASection 32(1)(iia)

…IN THE INCOME TAX APPELLATE TRIBUNAL (DELHI BENCH ‘E’ : NEW DELHI) BEFORE SHRI A.T. VARKEY, JUDICIAL MEMBER and SHRI O.P. KANT, ACCOUNTANT MEMBER ITA No.2707/Del./2009 (ASSESSMENT YEAR : 2005-06) M/s. Nalwa Steel & Power Limited, vs. Addl.CIT, Range 13, (Earlier known as Nalwa Sponge Iron Ltd.) New Delhi. 28, Najafgarh Road, New Delhi – 110 015. (PAN : AABCN3209L) (APPELLANT) (RESPONDENT) ASSESSEE BY : Shri V.K. Tulsiyan, CA REVENUE BY : Shri P. Dam Kanunjna, Senior DR Date of Hearing : 02.09.2015 Date of Pronouncement : 18.11.2015 O R D E R PER A.T. VARKEY, JUDICIAL MEMBER : This appeal, at the instance of the…

M/S. Servo-Med Industries Pvt. Ltd vs. Commnr. of Central Excise, Mumbai

The appeal is allowed and the impugned judgment is hereby set aside

C.A. No.-000583-000583 - 2005Supreme Court07 May 2015
Section 2

…y the well settled principles of excise law, amounts to ‘manufacture’. This question, in our opinion, is settled by the decisions of this Court. Reference may be made to the decision of this Court in Empire Industries Ltd. v. Union of India [(1985) 3 SCC 314: 1985 SCC (Tax) 416] . Reference may also be made to the decision of this Court in CCE v. Krishna Carbon Paper Co. [(1989) 1 SCC 150: 1989 SCC (Tax) 42: (1988) 37 ELT 480] We are, therefore, of the opinion that by process of lamination of kraft paper with polyethylene different goods come into being. Laminated kraft paper is di…

M/S. Servo-Med Industries Pvt. Ltd vs. Commnr. of Central Excise, Mumbai

The appeal is allowed and the impugned judgment is hereby set aside

C.A. No.-000583-000583 - 2005Supreme Court07 May 2015
Section 2

…y the well settled principles of excise law, amounts to ‘manufacture’. This question, in our opinion, is settled by the decisions of this Court. Reference may be made to the decision of this Court in Empire Industries Ltd. v. Union of India [(1985) 3 SCC 314: 1985 SCC (Tax) 416] . Reference may also be made to the decision of this Court in CCE v. Krishna Carbon Paper Co. [(1989) 1 SCC 150: 1989 SCC (Tax) 42: (1988) 37 ELT 480] We are, therefore, of the opinion that by process of lamination of kraft paper with polyethylene different goods come into being. Laminated kraft paper is di…

Commissioner of Income Tax vs. Agricultural Market Committee

ITTA/227/2011HC Telangana27 Jun 2011

Bench: V.V.S.RAO,RAMESH RANGANATHAN

Commnr.of Central Excise, Chennai-II vs. M/S. Tarpaulin International

C.A. No.-005341-005341 - 2005Supreme Court04 Aug 2010

…REPORTABLE IN THE SUPREME COURT OF INDIA CIVIL APPELLATE JURISDICTION CIVIL APPEAL NO.5341 OF 2005 Commissioner of Central Excise, Chennai-II Commissionerate ..……….Appellant Versus M/s. Tarpaulin International ..….…..Respondent WITH CIVIL APPEAL NOS.6624-6626 OF 2005 Commissioner of Central Excise, Chennai-II Commissionerate .……….Appellant Versus M/s. Tarpaulin International & Ors. .….…..Respondents WITH CIVIL APPEAL NOS.7563-7564 OF 2005 Commissione…

Commnr. of Income Tax, Kerala vs. M/S. Tara Agencies

Appeal is allowed and the

C.A. No.-003568-003568 - 2001Supreme Court09 Jul 2007
For Respondent: M/s Tara Agencies
Section 35B

…t can be said to be \021manufacture\022. When oil is produced out of the seeds the process certainly transforms raw material into different article for use. 42. In Empire Industries Limited & Others v. Union of India & Others (1985) 3 SCC 314, it was observed that manufacture is complete as soon as by the application of one or more processes, the raw material undergoes some change and a new article is brought into existence having a distinct name and character would amount to manufacture. 43. A Constitution Bench of this court in M/s Ujagar Prints & Others (II) v. Union of Ind…

Commnr. of Central Excise, Jaipur vs. M/S. Mahavir Aluminium Ltd

The appeal is allowed accordingly with no

C.A. No.-006197-006197 - 2001Supreme Court11 May 2007
For Respondent: M/S MAHAVIR ALUMINIUM LTD
Section 2Section 3

…enerally understood to mean as "bringing into existence a new substance" and does not mean merely "to produce some change in a substance, however minor in consequence the change may be". 15. In Empire Industries Ltd. v. Union of India, (1985) 3 SCC 314, it was held that taxable event under Excise Law is ‘manufacture’. The moment there is transformation into a new commodity commercially distinct and separate commodity having its own character and name whether be it the result of one process or several processes, ’manufacture’ takes place and liability to excise duty under Section 4 is…

Commnr. of Central Excise, Indore vs. M/S.S. Kumars Ltd

C.A. No.-004172-004185 - 2000Supreme Court21 Nov 2005
For Respondent: M/s S. Kumars Ltd. & Ors
Section 11A

…e value of the processed fabrics as being that at which the merchant manufacturer was selling the processed goods. According to the respondents, this was in keeping with the decision of this Court in Empire Industries Ltd. V. Union of India & Ors. (1985) 3 SCC 314 (briefly referred to as Empire Industries). With effect from 01.03.1989, the same method was followed in respect of the fabrics processed by the respondent No. 1 on its own account. However, on the fabrics processed by it which had been received from the merchant manufacturers, the respondent No. 1 valued the processed goods on the basi…

Itw Signode India Ltd vs. Collector of Central Excise

Appeal is allowed in part but

C.A. No.-007868-007868 - 1995Supreme Court19 Nov 2003
For Respondent: Collector of Central Excise
Section 11A

…tues is well recognised and courts, except under extraordinary circumstances, would be reluctant to override the legislative judgment as to the need for and the wisdom of the retrospective legislation. In Empire Industries Ltd. v. Union of India ((1985) 3 SCC 314 : 1985 SCC (Tax) 416 : 1985 Supp 1 SCR 292), this Court observed : .... not only because of the paramount governmental interest in obtaining adequate revenues, but also because taxes are not in the nature of a penalty or a contractual obligation but rather a means of apportioning the costs of government amongst those who benefit from it. In…

Easland Combines, Coimbatore vs. Collector of Central Excise, Coimbatore

In the result, the appeals are partly allowed accordingly

C.A. No.-002693-002693 - 2000Supreme Court13 Jan 2003
For Respondent: COLLECTOR OF CENTRAL EXCISE COIMBATORE
Section 11Section 11A

…http://JUDIS.NIC.IN SUPREME COURT OF INDIA Page 1 of 11 CASE NO.: Appeal (civil) 2693 of 2000 PETITIONER: EASLAND COMBINES COIMBATORE RESPONDENT: COLLECTOR OF CENTRAL EXCISE COIMBATORE DATE OF JUDGMENT: 13/01/2003 BENCH: M.B. SHAH & D.M. DHARMADHIKARI JUDGMENT: JUDGMENT 2003(1) SCR 98 The Judgment of the Court was delivered by SHAH, J. The questions which were considered by the Customs, Excise & Gold (Control) Appellate Tribunal, New Delhi (hereinafter referred to as ’CEGAT) in Final Order No. 1467/99-B dated 5.1.2000 arising out of Appeal No. E./3646/1990(B), were-whether, as the clearances in issue were effe…