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8 M/s.Gemini Communication Ltd In that CPU an indigenouslv designed and structured Steel Panel was inbuilt with the CPU.

On that Structured Steel Panel an empty chip called E-Phom was fixed at a place which was structured by the appellant company. Itt:xt to the above, based on the requirements the High or Low transmission wireless adaptor was built in by the appellant on the structured steel panel inside the CPU.

Then, software called Red Hat Linux software specifically developed for the project requirement was transferred from the Master data to the empty E- Phorn chip.

(iii) profits of the undertaking can be recomputed in certain cases, (iv) no deduction available under any other provision of Chapter VIA (in respect of certain incomes), (v) Central Government may withdraw exemption by notification, (Vi) benefit of deduction is switched over in respect of the remaining period in case of amalgamation or demerger and (vii) audit report is to be obtained in Form NO.10CCB.

6.2 The appellant is engaged in the business of manufacture and service of communication and networking products mainly for state government and Central government undertakings such as TNEB and BSNL. It has also supplied its products to other private customers also. The sales made to the above two government undertakings was 19 M/s.Gemini Communication Ltd RS.37.62 crores (TNEB- Rs. 35.65 crores and BSNL- RS.1.96 crores) out of the total sale of RS.52.61 crores. During the year under consideration, the company did project for Tamilnadu Electricity Board for centralization of various collection centres with the administrative network for the whole state. For this purpose, the appellant purchased and imported PCBs, RAMs, high and low transmission wireless adaptors, wireless antennae components, flash Ram software, Red Hat Linux software and other networking components. Using these components, the company redesigned, developed and manufactured a single product to suit the requirement of the project. The end product was a distinct article and became a marketable product. In order to produce the above product, the appellant got provisional registration from Himachal Pradesh State Industrial Development Corporation (HPSIDC) on 22.8.2005 after making the necessary deposit. It started its manufacturing I production activity from a rented premises at MIG-4, Sec-3, Parwanoo, Solan District, Himachal Pradesh. It may be stated that the appellant subsequently got permanent registration from HPSIDC on 12.12.2008. The appellant is also registered with CST and HPGST authorities. It was subsequently allotted land at Baddi, District Solan on 20.12.2005. It took possession of the land on 18.1.2006. It received the approval of the plan to construct factory on 9.6.2006. The appellant received power release certificate for its factory from HPSIDC on 21.1.2007. After inspection and fulfillment of the terms and conditions, HPSIDC issued permanent registration Certificate on 12.12.2008. The appellant has also received Central Excise Registration Certificate on 25.7.2008 for manufacturing of excisable goods. The appellant has also filed annual sales-tax return with HPGST on 29.05.2006. It also got no dues Certificate up to 2010 from the office of the Excise and Taxation Commissioner at Baddi. It was also paying AMC to HPSIDC even in the year 2010. It is clear from the above details that 20 M/s.Gemini Communication Ltd the appellant had, in fact, carried on its business operation at Parwanoo, Dist.Solan (H.P.). The Hon'ble Supreme Court in the case of Bajaj Tempo Ltd v. CIT (62 Taxman 480) has held that a provision in the taxing statute granting incentives for promoting growth and development should be construed liberally. Since a provision intended for promoting economic growth has to be interpreted liberally, the restriction on it too has to be construed so as to advance the objective of the provision and not to frustrate it.

6.3 The second aspect is whether the appellant is carrying on "manufacturing or production" as required u/s 80-IC of the Act. A perusal of the various processes demonstrated by the appellant, as submitted by the Id.AR (reproduced at page 4 of this order), shows that the appellant is carrying on manufacturing activities. The provisions of section 80-lC states that it applies to any undertaking or enterprise which has begun or begins to manufacture or produce any article or thing not being any article or thing specified in Thirteenth schedule. Admittedly, the appellant has commissioned the unit during August, 2005 at Parwanoo. The fact that the unit was started on the basis of provisional registration and not on permanent registration would not make any difference to the claim for deduction u/s 80-lC. The process to get permanent registration takes time because various formalities including inspection by the authorities of the Department of Industries, Himachal Pradesh, is required to be completed before issuing the permanent registration certificate. Hence, absence of permanent registration would not be a ground to disentitle the appellant from the legitimate claim of the deduction. Be that as it may, the appellant on fulfilling the terms and conditions of the Department of Industries, Himachal Pradesh received the permanent registration on 12.12.2008. Coming back to the manufacturing process, the appellant, after procuring 21 M/s.Gemini Communication Ltd the raw materials like PCBs, RAM, cabinet, high and low transmission wireless adaptors and wireless antenna components etc., designed CPU without hard disk. An independently designed and structured steel panel was inbuilt with the CPU. On the structured steel panel, an empty chip called E-Prom was fixed at the designated place. Subsequently, based on the requirements of high or low transmission, wireless adaptor was built in on the structured steel panel inside the CPU. A software named Red Hat Linux software specifically developed for the TNEB project was then transferred from the master data to the empty E-Prom chip. This software loaded chip was only allowed to access the frequency with the centralized administration network of the TNEB and other customers. Due to these processes, a distinct and different new product emerges to suit the specific requirement of the concerned customers. Also this indigenously designed and manufactured product would not be available in the market to any other person. It is thus clear that after several processes as aforesaid, manufacture of CPU without hard disk takes place. In other words, in the course of manufacture, the raw material/inputs used therein undergo several processes and a new commercial product comes into existence which is a distinct and separate commodity having its own character, use and name.