AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2012 (2) TMI 313
X X X X Extracts X X X X
X X X X Extracts X X X X
....s 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 Scheme for export of the said products as falling under Item Serial No. 7 of Product Group: Engineering-Product Code: 61 at 7% ad valorem. The Customs Officer, on verification of the shipping bill, has found that the goods in question are fabricated aluminium products and therefore, denied the export of goods as being prima facie liable for confiscation under the Customs Act, 1962 (for short "the Act") 3. Thereafter, the assessee , by his letter dated 24.6.2002 had made a request to the Commissioner of Customs for a personal hearing in lieu of the show cause notice. At the time of the personal hearing, the assessee had contended that the aluminium grills were fabricated items, but the end-product is made out of the extruded aluminium. The Commissioner, while rejecting the contention of the assessee , has passed an order dated 28.6.2002 for confiscation of goods and im....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d 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 Exemption/Remission Scheme requires to be noticed. Chapter 4 of Exim Policy and Handbook of Procedures provides for Duty Exemption/Remission Scheme. Paragraph 4.37 of the said chapter provides for the DEPB Scheme. The said paragraph reads as under: "The Policy relating to Duty Entitlement Passbook Scheme ( DEPB ) Scheme is given in Chapter 4 of the Policy. The duty credit under the scheme shall be calculated by taking into account the deemed import content of the said export product as per SION and the basic custom duty payable on such deemed imports. The value addition achieved by export of such product shall also be taken into account while determining the rate of duty credit under the scheme." Entry 7 of the Product Code 61 in the DEPB schedule reads as under: "Extruded Aluminium products including pipes and tubes". 9. The facts are not in dispute. The assessee is a ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e 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 between the punch and die walls; as the punch comes in contact with the blank, the metal has nowhere to go except through the annular opening between punch and die. The punch moves a distance that is controlled by a press setting. This distance determines the base thickness of the finished part. The process is particularly adaptable to the production of thin-walled, tubular-shaped parts having thick bottoms, such as toothpaste tubes. A process requiring less pressure than backward extrusion is the forward-extrusion process, originally called the Hooker process. A formed blank (usually a thick-walled cup) is placed in a die cavity and struck by a punch having a shoulder or enlarged section a short distance from the end. Upon contact with the blank, the nose or end of the punch starts to push the center of the blank through the die cavity, in a manner similar to the action occurring in deep draw....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed 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 "extruded aluminium products" in Item 7 is restrictive in nature and will give 'extruded aluminium products' a restrictive meaning in order to include the standardized products such as pipes and tubes within the meaning of the term extruded aluminium products. 16. In South Gujarat Roofing Tiles Manufacturers Assn. & Anr . v. State of Gujarat & Anr ., (1976) 4 SCC 601 , this Court has held thus: "Though "include" is generally used in interpretation clauses as a word of enlargement, in some cases the context might suggest a different intention. Pottery is an expression of very wide import, embracing all objects made of clay and hardened by heat. If it had been the legislature's intention to bring within the entry all possible articles of pottery, it was quite unnecessary to add an explanation. We have found that the explanation could not possibly have been introduced to extend the meaning of ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....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 whether the language of Entry 62 List II would resolve the issue. The juxtaposition of the different taxes within Entry 62 itself is in our view of particular significance. The entry speaks of "taxes on luxuries including taxes on entertainments, amusements, betting and gambling". The word "including" must be given some meaning. In ordinary parlance it indicates that what follows the word "including" comprises or is contained in or is a part of the whole of the word preceding. The nature of the included items would not only partake of the character of the whole, but may be construed as clarificatory of the whole. 74. It has also been held that the word "includes" may in certain contexts be a word of limitation (South Gujarat Roofing Tiles Manufacturers Assn. v. State of Gujarat). ..." 19. In Karnataka Power Transmission Corporation & Anr . v. Ashok Iron Works Private Limited, (2009) 3 SCC 240 , this Court ....