1987 (2) TMI 233 - AT - Central Excise

Interpretation of 'Silver' in Tariff Item 24: Metal vs. Articles

The Tribunal held that Tariff Item 24, referring to 'silver,' only encompasses the metal itself and not articles made from silver. The decision emphasized ... “Silver” - Meaning and scope Issues:1. Interpretation of Tariff Item 24 - Whether it includes articles of silver.2. Scope of the term 'silver' in the context of the Central Excise Tariff.Analysis:1. The appellants held a Central Excise License for manufacturing silver articles falling under Tariff Item 68. They claimed exemption from excise duty under Notification No. 24/65 for silver articles. The dispute arose when the Assistant Collector assessed duty on certain silver articles at 5% ad valorem. The appellants contended that 'silver' in Tariff Item 24 should be interpreted broadly to include silver in all forms, not just as ingots. They referred to a Bombay High Court decision for support.2. The central issue was whether Tariff Item 24, describing the goods as 'silver,' includes articles of silver. The Tribunal analyzed the dictionary definitions of silver and common parlance usage. The Tribunal observed that while other tariff items specifically mentioned articles made from the metal, Tariff Item 24 did not. The Tribunal concluded that the entry for 'silver' only referred to the metal itself, not products made from silver. The Appellate Collector upheld this view, rejecting the appellants' contention.3. Another member of the Tribunal, in a separate opinion, agreed with the interpretation that 'silver' in the Tariff refers only to the metal itself. However, he added that forms of silver used for their metal value in manufacturing other distinct articles would fall under the term 'silver.' This would include ingots, bars, slabs, billets, shots, and wires used solely as metals for fabrication of other articles.4. The Editor's Comments criticized the judgment for not distinguishing between crude silver forms and products made from them. The comments argued that the term 'silver' should encompass all forms of the metal, including ingots and sheets, based on the principle that a general term in fiscal legislation covers the commodity in all its forms. The Editor suggested a reconsideration of the decision that excluded ingots, sheets, or wires from the definition of 'silver.'In conclusion, the Tribunal held that Tariff Item 24, referring to 'silver,' only encompassed the metal itself and not articles made from silver. The differing opinions within the Tribunal highlighted the debate over whether certain forms of silver, used primarily for their metal value in manufacturing other articles, should be included within the scope of the term 'silver.' The Editor's Comments raised valid points regarding the interpretation of general terms in fiscal legislation, suggesting a broader understanding of 'silver' to include all its forms.