Decided on April 06,1994



Vimal Gandhi, Judicial Member - (1.) THESE two appeals - one by the revenue for the assessment year 1989-90 and the other by the assessee for the year 1990-91 involve a common point - whether the assessee is a "Supporting Manufacturer" under Proviso to Sub-section (1) of Section 80 HHC.
(2.) For the assessment year 1989-90, the assessee claimed deduction of Rs. 1,94,44,205 in respect of sale of Rs. 7,48,83,580 made to export house for purposes of export. The 'supporting manufacturer' is defined as per Explanation to Sub-section (4A) of Section 80HHC as under: Supporting manufacturer' means a person being an Indian company or a person (other than a company) resident in India. (Manufacturing goods) or merchandise and selling such goods or merchandise to an Export House or a Trading House, for the purposes of export. 2.1 The assessee rested its claim on the following submissions made before the Assessing Officer: 1. Various brokers bring live buffaloes/goats at the factory premises and after visual examination live animals are chosen for purchase. The animals are then killed, de-skinned and carcasses are brought for inspection and acceptance at area No. 1 where they are inspected by qualified veterinarians for organoleptical aspects as well as visual defects. Uncleaned pieces are immediately trimmed and washed. Non-confirming pieces are rejected and destroyed. 2. The accepted conforming carcasses are stored overnight in chilled rooms at 4 degrees centigrade for processing prior to the deboning operation. The chilled storage at controlled temperature also helps in reducing microbial count of the muscles and lower the PH factor. The subsequent morning the chilled carcasses are removed to the beboning, the trimming section, where highly skilled and experienced butchers debone the carcasses in hygienic conditions following international mat cutting practices under the supervision of qualified food technologists. The carcasses after deboning and trimming is sent to inspection and prepacking section.
(3.) THE resultant material obtained from deboning and trimming section is physically inspected for conformation of the specification to the packing requirements of different overseas markets. THE materials are graded, weighed and packed in different polythene bags according to their individual characteristics and the rejected pieces are destroyed.;

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