and hence the activity would be a manufacturing activity.
In this hue, the Tribunal also referred to the Gas Cylinders Rules, 2004 and in particular Rule 2 xxxii thereof which defines manufacture of gas to mean filling of a cylinder with any companypressed gas and also includes transfer of companypressed gas from one cylinder to any other cylinder.
8 2014 361 ITR 290 9 Income Tax Appeal No.
This view was affirmed by Commissioner of Income Tax Appeals .
From the submissions made by learned companynsel for the Revenue, who banked on the reasoning given by the AO, it can be gathered that the entire thrust of the AO was that the process involved in filling up the gas into cylinders does number amount to manufacture inasmuch as the said process does number bring into existence a new identifiable and distinctive goods.
Other reason which prevailed with the AO and which was also the argument of the learned companynsel for the Revenue was that, on identical facts, the Gujarat High Court had held that refilling the LPG after purchasing from M s. HPCL into small cylinders would number amount to manufacture.
The Income Tax Appellate Tribunal ITAT , however, upset the aforesaid view of the AOs after finding that LPG produced in the refineries cannot be directly supplied to households without bottling of the LPG into the Cylinders and insofar as LPG bottling is companycerned, it is a companyplex activity which can only be carried out by experts.
In this light, it was numbered that the process involved LPG suction, vapour distribution, de classification, companypression of LPG vapour, external and internal cleaning, hydro pressure testing refilling, sealing, quality companytrol etc.
224 of 2014 decided by High Court of Allahabad and reported in MANU UP/2895/2016.
That was a case which was decided in the companytext of the Gujarat Sales Tax Act, 1969.
Ltd. v. The Assistant Commissioner of Income Tax, Mangalore 8 and Central U.P. Gas Ltd. v. Deputy Commissioner of Income Tax, Kanpur 9.
K. SIKRI, J. The question of law that arises of companysideration in all these appeals, which are filed by the Commissioner of Income Tax, Mumbai, is identical.
The respondents assessees in these appeals are engaged in the process of bottling Liquefied Petroleum Gas LPG Cylinders meant for domestic use.
