2001 PLP (Trib (PTD)

5 % (central rate) (ii) Factory and workshop 10% (iiia) Residential Quarters for Labour 10%

2. The above Schedule has mentioned classes for general guidance. It obviously does not mean that it ignores or disentitles any type of building. The impression comes from the Item No.1 wherein the building not otherwise specified have been covered. The case of the assessee, however, is that the cold storage is a properly specified building and it is covered within the definition of "Factory and workshop". In this regard the first argument is that a cold storage plot is treated as an industrial land and its connection a!l9wed by the WAPDA is also approved as an industrial connection. Further, the Director Industries under Factories and Labour Act has also confirmed its status as an industry through letter of permission. The other relating facts in respect of a cold storage building are that the machinery involved and installed is a complex mechanical unit. It comprises of multifarious control systems and other installations. It involves a very comprehensive installation of pipeline through the building and other ancillaries which normally are in tons of weight. Further, the functioning of the cold storage unit ends in more erosion of the building on account of its utilization than any other factory or workshop. A workshop is defined to be a place where work is being done. The same, therefore, includes all kinds of works including manufacturing, repairing etc. For the purposes of depreciation it has still a wider scope. My opinion funds support from following definitions:

Workshop (1) A building or a room where any work is carried. (2) A seminar or single session for training, discussion, etc. (Webster's Comprehensive Dictionary, International Edition, Volume Two by J.C. Ferguson Publishing Co., Chicago) And, 'work' has been defined as follows in the same dictionary:

Work: Continued exertion or activity directed to some purpose or end; especially normal labour, hence opportunity for labour, occupation. The other definitions are as follows:

2. That upon which labour is expended on undertaking; task:

3. That which is produced by or as by labour, specifically, an engineering structure, fortification a design produced with a needle; also, a product of mental labour, as a book or open.

4. A manufacturing or other industrial establishment; usually in the plural. From the above, it is clear that a 'work' means any physical activity that means to obtain some end, the goal or the purpose. It does not necessarily mean only a place of manufacturing process. The 'workshop' as such obviously is a place where some work is being carried on be that for the purpose of manufacturing or not. Since the issue before me is in relation to an exemption clause, in respect of a facility provided by the Legislature in terms of depreciation; restrictive meanings are to be allowed to the definition of "Factory or shop". However, even from this angle the definition of the words 'work' and 'workshop' would include the buildings which are utilized for the purposes which are not strictly manufacturing but are ancillary to the manufacturing process. A cold storage is undoubted an industrial undertaking and is fully covered under the definition of "workshop'". As already mentioned it operates through a huge plant that manufactures a type of gas which maintains the freshness of the items placed therein and its natural shape for a longer duration than it can normally retain. Manufacturing of compressed gas for cooling the atmosphere within the area of the cold storage, is undoubted a manufacturing process. So, even if a respective view is required the cold storage shall be covered into it. I, therefore, hold without any hesitation that a cold storage is very well-covered under the definition of the word 'workshop' hence is entitled to depreciation @ 10%. The order of the CIT (A), therefore, is fully justified and the same is hereby maintained. C:M.A./M.A.K./126/Tax(Trib.) Order accordingly.