TMI Blog2012 (2) TMI 313X X X X Extracts X X X X X X X X Extracts X X X X ..... r Appellant: Mr Harish Chandra, Sr Adv. Mr Abhinav Mukerjee, Adv. For Mr A K Sharma, Adv. for Mrs Anil Katiyar, Adv. For Respondent: Mr Aditya Kumar, Adv. For Mr Tara Chandra Sharma, Adv. JUDGEMENT 1. The core issue that falls for our consideration and decision in this appeal is: whether "aluminium grills" can be termed as "Extruded aluminium products"? If the answer is in positive, the assessee would be covered by Item Serial No.7 of the Product Code 61 of the Duty Entitlement Passbook Scheme (for short "the DEPB Scheme"). The assessee has succeeded before the Customs, Excise and Gold (Control) Appellate Tribunal (for short 'the Tribunal'). The Revenue in this appeal calls in question the correctness or otherwise of the judgment and order of the Tribunal. By the impugned judgment and order, the Tribunal has set aside the order of confiscation of goods and the penalty imposed by the Commissioner of Customs. 2. The facts in nutshell are: the assessee is the manufacturer of aluminium grills made out of extruded aluminium sections. In its regular business activity, the assessee had filed a shipping bill dated 18.06.2002, inter alia, claiming the benefit of the DEPB Schem ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rocess of aluminium extrusion and contends that it is a product, which is strictly obtained from the process of extrusion, without any alterations or modifications, is eligible for the benefit provided under the DEPB Scheme. He, therefore, submits that the product obtained by fabricating the extruded aluminium is not eligible for the benefit of the Scheme. In support of their contention, they have produced a xerox copy of the book titled as "The Complete Technology Book on Aluminium and Aluminium Products". A reference is also made to certain observations made by this Court while explaining the meaning of the expression "the product". 7. Per contra, Shri Aditya Kumar, learned counsel appearing for the assessee submits that the expression "extruded aluminium products" used in Entry 7 of Code 61 is sufficiently wide to include products which are made out of the extruded aluminium by fabricating it. He contends that even the finished end-product which is in the fabricated form of the extruded aluminium, the same would fall under Entry 7, as extruded aluminium product. 8. In order to resolve the controversy posed in this appeal by the parties to the lis , a reference to Duty Exempt ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process of "extrusion", as explained in the Textbook McGraw-Hill Encyclopedia of Science Technology, reads as under : "Extrusion: The forcing of solid metal through a suitably shaped orifice under compressive forces. Extrusion is somewhat analogous to squeezing toothpaste through a tube, although some cold extrusion processes more nearly resemble forging, which also deforms metals by application of compressive forces. Most metals can be extruded, although the process may not be economically feasible for high-strength alloys." The process of the cold extrusion of aluminium can also be noticed from the aforesaid book. The same is as under: "Cold extrusion: The extrusion of cold metal is variously termed cold pressing, cold forging, cold extrusion forging, extrusion pressing, and impact extrusion. The term cold extrusion has become popular in the steel fabrication industry, while impact extrusion is more widely used in the nonferrous field. The original process (identified as impact extrusion) consists of a punch (generally moving at high velocity) striking a blank (or slug) of the metal to be extruded, which has been placed in the cavity of a die. Clearance is left betwee ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee's stand before the Commissioner of Customs and also before the Tribunal, that it fabricates extruded aluminium into aluminium grills. It is not the case of the assessee either before the Commissioner of Customs or before the Tribunal, that aluminium grills are the same as extruded aluminium products. It is an admitted position that assessee carries out the fabrication to derive a product known as aluminium grills made out of extruded aluminium products. If that fact situation is accepted, then the Tribunal was wholly incorrect in holding that the aluminium grills are nothing but extruded aluminium products and therefore, they would fall under Entry 7 of Code 61. The issue before us can be looked into from another angle also. The Legislature, while enumerating the goods that would fall under Item 7 of the Product Code 61 of the DEPB Schedule, immediately after the expression "extruded aluminium products" has specifically used the expression "included" to include pipes and tubes. The legislature recognizes pipes and tubes which are engineered out of the extruded aluminium products, as included under the Item 7. The expression "including pipes and tubes" following the words " ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cture of Mangalore pattern roofing tiles is outside the purview of Entry 22." 17. In Reserve Bank of India Ors . v. Peerless General Finance Investment Co. Ltd. Ors ., (1987) 1 SCC 424 , this Court while analysing the different connotations of the 'inclusive definitions' has held: "32. We do not think it necessary to launch into a discussion of either Dilworth case2 or any of the other cases cited. All that is necessary for us to say is this: Legislatures resort to inclusive definitions (1) to enlarge the meaning of words or phrases so as to take in the ordinary, popular and natural sense of the words and also the sense which the statute wishes to attribute to it, (2) to include meanings about which there might be some dispute, or, (3) to bring under one nomenclature all transactions possessing certain similar features but going under different names. Depending on the context, in the process of enlarging, the definition may even become exhaustive." 18. In Godfrey Phillips India Ltd. Anr . v. State of U.P . Ors ., (2005) 2 SCC 515 ) , this Court has observed thus: "73. Having rejected the second premise contended for by Mr Salve, the next question is wheth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ss General Finance and Investment Co. Ltd.2 and this Court summarised the legal position that (Peerless case2 , SCC pp. 449-50, para 32) inclusive definition by the legislature is used: "32. ... (1) to enlarge the meaning of words or phrases so as to take in the ordinary, popular and natural sense of the words and also the sense which the statute wishes to attribute to it; (2) to include meanings about which there might be some dispute; or (3) to bring under one nomenclature all transactions possessing certain similar features but going under different names." 17. It goes without saying that interpretation of a word or expression must depend on the text and the context. The resort to the word "includes" by the legislature often shows the intention of the legislature that it wanted to give extensive and enlarged meaning to such expression. Sometimes, however, the context may suggest that word "includes" may have been designed to mean "means". The setting, context and object of an enactment may provide sufficient guidance for interpretation of the word "includes" for the purposes of such enactment." 20. Principles of Statutory Interpretation (12th Edition, 2010) by Just ..... X X X X Extracts X X X X X X X X Extracts X X X X
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