Assessee procured gas from GAIL and compressed it through compressor for manufacture of compressed natural gas (CNG), which was subsequently sold to customers, as fuel for vehicles. Assessee claimed that activity undertaken by it amounted to manufacture within meaning of S. 2(29BA) and claimed deduction under S. 8-IA of the Act. AO rejected the claim which was up held by the Tribunal. High Court held that without undergoing process of compression, natural gas in its original form could not be used as fuel for automobile industry and, thus, compressed natural gas in its compressed form had a distinct identity and character and use accordingly the activity undertaken by assessee amounted to manufacture and allowed the claim.  Followed ITO v. Arihant Tiles & Marbles (P) Ltd. (2010) 320 ITR 79 (SC) (AY. 2008-09)