2008 (5) TMI 565

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....ation seeking waiver of pre-deposit. Heard the parties on the said application. 2. The appellant is a manufacturer of plastic polyethylene film/sheets and they claim exemption from excise duty by virtue of Notification No. 3/2004 dated 8-1-2004, under Section 5A(1) of the Central Excise Act. The notification so far is relevant reads as under :- "In exercise of the powers conferred by Sub-section (1) of section 5A of the Central Excise Act, 1944 (1 of 1944), the Central Government being satisfied that it is necessary in the public interest so to do, hereby exempts - (i)      All items of machinery including instruments, apparatus and appliances, auxiliary equipment and their components/parts required....

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...., it is clear that in order to qualify for exemption, the goods must be items of machinery required for setting up of water supply plant. It is common knowledge that for setting up water supply plant, a number of materials such as cement, iron etc., are required but all of them cannot be termed as 'machinery'. It is well settled that exemption notifications are to be strictly interpreted. The words "all items" are qualified by the word "of machinery" and therefore "all items" cannot be understood to mean each and every item irrespective of nexus with machinery for setting up a power plant. On a plain reading of Chapter 39 and Chapter 85 of the Central Excise Tariff also it would appear that plastic polyethylene film/sheets are distinct from....

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....ll kinds including submarines; (c)               Tugs, dredgers, fire-floats and salvage ships." The Explanation is an inclusive definition of the term ocean-going vessel for the purpose of the notification. On the interpretation of such inclusive definition in Craies on Statute Law we find (p 213) the following : "There are two forms of interpretation clause. In one, where the word defined is declared to 'Mean so and so, the definition is explanatory, and prima facie restrictive. In the other where the word defined is declared to 'include' so and so, the definition is extensive, e.g., 'Sheriff' includes 'under Sheriff'. Looking at the Notification 211/83 in t....