Compressing Natural Gas Qualifies as Manufacturing Activity: ITAT Upholds Gujarat Gas Ltd.’s Additional Depreciation Claim

The ITAT upheld Gujarat Gas Ltd.’s claim for additional depreciation, ruling that compressing natural gas qualifies as manufacturing activity. The tribunal observed that the process significantly alters the gas’s physical properties, meeting the definition of manufacturing under tax laws. This decision affirms the eligibility of such industrial activities for specific tax benefits, encouraging infrastructure and energy companies to invest in advanced processes. It also underscores the tribunal’s role in providing clarity on tax provisions, particularly in specialized industrial operations.