Devrekh Exports(Sez), Surat vs Assessee
M/s.D.Jayantilal Exports vs. Jt.CIT in ITA No.1647/Ahd/2008, dated
19/12/2008, decision of which has been elaborately quoted above in this
order. The assessee explained his activity as major parts of machineries
were manufactured under the supervision of Shri Naik and the
manufactured parts were sent to the premises in the SEZ where they were
assembled and tested. After being approved, the machinery was
disassembled as per the packaging requirements and the product was
despatched by shipping containers after being verified by the Custom
Department. On the above facts, we find that the purchases shown by the
assessee was not disputed by the Department and the same was accepted
as genuine. However, in our considered view on the facts of the case, the
activity of the assessee which was carried out at the SEZ as claimed by
the assessee required consideration which was not considered by the lower
authorities. From the details furnished before us also, the activities
undertaken by the assessee in the SEZ is not clear. It needs to be
examined whether the activity of assembling carried out by the assessee
tantamounts to manufacture or producing articles or things or not. Further,
the decision of the Tribunal was relied upon by the assessee was also not
taken into consideration by the lower authorities.