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(h) The learned counsel submitted that one will, therefore, have to content with the expression "article" or "thing" used in s. 80-I as compared to the singular mention of the word "article" used in ss. 80-I, 80J, 8OHH and 8OHHA. We will also have to take due notice of the expression "goods" used in s. 80-I(8) which was not considered by the Hon'ble Supreme Court in its decision of N. C. Budharaja (supra).

(i) The learned counsel submitted that the appellant is not engaged in the business of civil construction but is engaged in the business of production/manufacture of effluent treatment plant. The nature of activities carried out by the assessee have been explained in the write up dt. 8th May, 1996, furnished in the course of hearing apart from voluminous data submitted in the paper book. He submitted that merely because the bulk of the activities is carried on at the site and merely because the plant is fastened to the earth, it does not become the part of civil construction as such and it also does not become immovable property in the sense the word "immovable" as is used with reference to civil work like dam, road, building, etc. The effluent treatment plant are capable of being dismantled and set up in any other place, unlike the case of civil construction simpliciter. The learned counsel submitted that the assessee is engaged in the business of manufacturing of effluent treatment plant which is a very high priority area. The concerning authorities of Government of India, Department of Industries, have accorded approval for the technical collaboration with Degremont France. If such an important manufacturing activity carried on by the assessee with the accumulated rich experience of their foreign collaboration is not regarded as qualifying for deduction under s. 80-I, it would defeat the very purpose of providing such an incentive for setting up of such high priority industries.

14. The company entered into a technical collaboration agreement with M/s. Degremont, a French company (hereinafter referred to as DF) for acquiring technical know-how in connection with the engineering, design, construction, erection, operation and maintenance of waste water systems in India. This agreement was subject to obtaining of the final consent and approval by the relevant Indian Government authorities. The said agreement contains various clauses relating to the following aspects :

Pages of the paper book

- Fouling index meter - Sludge cohesion measuring device - Field analysis sets - Spectrophotometer - Turniditymeter - Conductivity meter - Ph meter

16. The licence agreement was also executed between DI and DF in the year 1986 which is marked as Exhibit 'C' of the technical collaboration agreement.

The Contents of the licence agreement are as under :

Licence agreements are as under :

Page of the paper book

3. Registration of industrial property Clause 6 of the technical collaboration agreement which gives the details of financial agreement is reproduced hereunder :

The appellant company had acquired a valuable technical know-how rights from DF in accordance with the technical collaboration agreement. The Central Government has accorded its approval for the aforesaid technical collaboration agreement for manufacture of water and water treatment plant as would be evident from letter dt. 25th February, 1987, issued by the Ministry of Industry, Government of India. The memorandum of association of the appellant company also clearly indicates that the aforesaid company was formed with the main object of designing, manufacturing, supplying, erecting and instalment of effluent treatment plant (hereinafter referred to as ETP). The activities carried on by the assessee as per the terms of contracts executed with the customers briefly consists of the following :