TMI Blog2001 (8) TMI 122X X X X Extracts X X X X X X X X Extracts X X X X ..... with binder', unfortunately, the answer cannot be in the affirmative. It contains specifications in terms of a technology transfer agreement, it is not a collection of various articles in trade journals but a definite importation of technology transfer which obviously was not intended to mean by the user of the word 'manual'. The word 'manual' means and implies a small book for handy use and includes a reference book, a hand-book as also a text book (vide Concise Oxford Dictionary) and on attribution of the same meaning, the words used by the legislature cannot identify to be a product of technology transfer between two countries. Ordinary common parlance ought to be attributed for the expressions used by the legislature and on attribution thereof one cannot possibly come to a conclusion that the exemption notification ever aimed at extending the meaning to the extent as has been effected by the Tribunal. The decision of this Court in Scientific Engineering (supra) has been totally misread and misapplied in the contextual facts - Scientific Engineering (supra) on the contrary lends all possible credence to the contentions as propagated by the appellants and not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Nil - 15. 49.06 and 49.11 Plans, drawings and designs 10 % ad valorem - ……………………………………………. 3.The factual score further depicts that by reason of the classification of the goods in question by the revenue authorities as falling under Chapter 49.11, the goods imported were valued at DM - 32,66,900.00 equivalent to Rs. 7,50,61,438.00 for the purpose of duty thereon. The Commissioner of Customs however, took the view that by reason of non-payment of duty as presented in the Table as above, the goods are liable to be confiscated and since the same were not available for such confiscation, he imposed penalty of Rs. 10 lakhs on the importer under Section 112 of the Customs Act and further penalty of Rs. 5 lakhs each on three of the Directors of the Company being the importer herein and hence, the appeal before the Tribunal (CEGAT). The Tribunal however, on a detailed judgment came to the conclusion that the materials imported by the appellant are books coming under Tariff Item 49.01 and thus coming within the ambit of Sl. No. 10 of the Exemption Notification by reason wherefor question of lev ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntical meaning, though however, in a larger spectrum, three words used in the exemption notification have three individual attribute by reason wherefor, legislature it fit to specifically refer to each of these words. 10.Turning attention on to Serial No. 10, be it noted that in Chapter 49 'printed books' and 'printed manuals' including those in loose-leaf form with binder, has been specifically referred to a 'Nil' duty article. It is in this context that the learned Attorney General in support of the appeal contended that in general trade parlance a book is known by feature like (i) a book has an author, (ii) A book has a publisher, (iii) A book is a priced publication, (iv) The book is available to all and sundry who pay for it, (v) The book does not have a Memorandum of Understanding; (vi) There is no confidentiality about the book; (vii) A book has a subject to deal with; (viii) the pages are serially numbered and neatly bound; and (ix) the last but not the least, it should have ISBN Code i.e. International Books Subscriber Nomenclature. 11.As a matter of fact, it has been the contention of the appellant that Serial No. 10 has been incorporated in the exemption notification ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in details on the issue whether the goods under reference attracted any duty at the relevant period of time. There is also no denying the fact that at the relevant period of time, the importation of technical documents in the form of design and drawing were chargeable to duty under Tariff Heading No. 4906/4911." 13.The Tribunal, however, while dealing with the issue, placed strong reliance on the decision of this court in Scientific Engineering House Pvt. Ltd. v. Commissioner of Income Tax, Andhra Pradesh : 1986 (1) SCC 11 (AIR 1986 SC 338). The Tribunal upon appreciation of the contents of the judgment of this Court in Scientific Engineering (supra) came to a conclusion that the imported goods are printed books and they come under Chapter 49 and as such they are entitled to complete exemption as per the general exemption No. 121 covered by S. No. 10 of the Notification as noticed hereinbefore. 14.While relying upon the judgment in Scientific Engineering (supra), the Tribunal placed reliance on the observations of this Court viz. 'it cannot be disputed that these documents regarded collectively will have to be treated as a book' and came to a conclusion as noticed above. It ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... et." (Emphasis supplied). 15.While there is some factual divergence as noticed above but the factum of the drawings etc. not forming part of a book within the exemption notification stands accepted in Scientific Engineers (supra) as would be evident from the emphasized portion in paragraph 13 noticed above. In this view of the matter, the aforesaid decision of this Court in Scientific Engineers (supra) does not lend any assistance to the assessee, rather runs counter to the respondent's contentions. As can be seen from one of the volumes produced before us, it contains documents in loose sheets merely put up in a folder. It has none of the characteristics of a book known in the common trade parlance. At any rate, the principal interest in the goods is related to transfer of technology to the assessee in the form of drawings, designs and plans for setting up plant to manufacture polyester, polyester filament yarn and polyester staple fibre. Thus viewed from any angle, the goods imported by the assessee are not covered by Sl. No. 10 but are covered by Sl. No. 15 of the said exemption notification. 16.Incidentally, the decision of the High Court of Gujarat in the case of Commissio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... designs, charts, plans and other literature" - these items have been ascribed to be a part of the plant for the purposes of Depreciation Allowance in terms of Sections 32 and 43(3) of the Income-tax Act. Merely by reason of the factum of certain writings on various sheets of papers one cannot ascribe the documentation to be a 'book'. The word 'book' has not been defined in the Act but the 'book' in common acceptation is a literary composition from which one may extend or advance his or her knowledge and learning. 18.In any event, one of the basic cannon of interpretation of statute is that the legislature intends to ascribe the ordinary common parlance and meaning to the words used therein. In the matter under consideration, the legislature has used the word 'printed books' and clarified it by inclusion of covers - the intent thus seems to be rather obvious to mean books in ordinary sense and not any other meaning. The legislature has also included 'printed manuals' and explained it by express words "including those in the loose leaf form with binder". Can the articles imported be termed to be 'printed manuals' in 'loose leaf form with binder', unfortunately, the answer cannot b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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