TMI Blog1997 (5) TMI 108X X X X Extracts X X X X X X X X Extracts X X X X ..... was perverse or unreasonable. In our view, the aluminium scraps, produced by the assessee in course of manufacturing utensils, could not be taxed under T.I. 27 before its amendment on 1-3-1981. In favor of assessee. - 1403 of 1987 - - - Dated:- 5-5-1997 - S.P. Bharucha and Suhas C. Sen, JJ. REPRESENTED BY : S/Shri Krishnan Venugopal and S.R. Setia, Advocates, for the Appellant. S/Shri N.K. Bajpayee, R.S. Rana and P. Parmeswaran, Advocates, for the Respondent. [Judgment per : Sen, J.]. The appellant, Balaji Enterprises, purchases aluminium ingots from the market and manufactures aluminium containers which are used according to the permission granted by the Excise Authority under Rule 56A of the Central Excise Rules. T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . plus Rs. 2,000/- per metric tonne. -do- (b) Manufactures, the following, namely, plates, sheets, circles, strips, shapes and sections in any form or size, not otherwise specified. -do- -do- (c) Foils (whether or not embossed, cut to shape, perforated, coated, printed or backed with paper or other reinforcing material) of a thickness (excluding any backing) not exceeding 0.15 mm. -do- -do- (d) Pipes and tubes other than extruded pipes and tubes. -do- -do- (e) Extruded shapes sections including extruded pipes and tubes. -do- -do- (f) Containers, plain, lacquered, or printed, or lacquered and printed. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... description of `aluminium in any crude form will be excisable to duty as such. 6. The problem in this case, however, is about the nature of the scraps produced by the appellant. Can the scraps be regarded as `aluminium in any crude form ? Obviously Tariff Item 27(a) will not take in aluminium in any finished form. The dictionary meaning of `crude is : In a state needing preparation for use; not refined; raw; uncooked (Webster Comprehensive Dictionary, International Edition 1984). 7. From the Tariff Description it appears that in sub-item (a)(i) of Tariff Item 27 `crude form of aluminium will include ingots, bars, blocks, slabs, billets, shots and pellets. That is the most primary form of the metal. Sub-item (b) of Tariff Item 27 sp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rap which is obtained in course of manufacturing aluminium containers is an integral part and inevitable consequence of the manufacturing process. 9. In our view, what emerges as a consequence of a manufacturing process out of the aluminium circles cannot be treated as the metal in crude form. 10. The position becomes clearer after the amendment of T.I. 27 on and from 1-3-1981. `Waste and Scrap was specifically included in sub-heading (aa) of T.I. 27. The Tariff Description was as under :- AFTER 1-3-1981 ITEM NO. 27 - ALUMINIUM Item No. Tariff Description Rate of Duty 27. ALUMINIUM (A) In any crude form including ingots, bars, blocks, slabs, (i) billets, shots and pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of sub-item (A) of Item 27. It was a new entry altogether bringing `Waste and Scrap for the first time to duty after specifying the limited scope of this entry by adding Explanation III. 13. It has been rightly contended on behalf of the appellant that whenever things like `Waste and Scrap , under any head, have been sought to be taxed in the Central Excise Act, specific entries have been made for this purpose. In Tariff Item No. 25 `iron in any crude form specifically includes pig iron, scrap iron, molten iron or iron cast in any other shape or size. The legislature specifically included the scrap iron within the description of `iron in any crude form in T.I. 25, but in the description of goods under the head `aluminium in any crude ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or unreasonableness in it. This assessment is not unreasonable much less perverse. 17. We are of the view that the Tribunal has really avoided answering the question of law raised before it. Whether the scraps generated during the course of manufacturing utensils should be treated as `aluminium in crude form is a question of law that had to be answered fairly and squarely by the Tribunal. The Tribunal s jurisdiction is not limited to deciding whether the decision of the departmental authority was perverse or unreasonable. 18. We are of the view that Tribunal should have examined the question of law before it and given proper answer. 19. However, we have examined the question. In our view, the aluminium scraps, produced by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
