2012 (2) TMI 313 - SC - Customs

Whether aluminium grills can be termed as Extruded aluminium products and assessee can take the benefit of the Item 7 of Code 61 - Held that - 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. Further, in various earlier decisions it is held that word includes may in certain contexts be a word of limitation and used in the sense of means . In view of the aforesaid reasons, aluminium grills cannot fit into Item 7 of the Product Code 61 of the DEPB Schedule in order to claim benefit of the DEPB Scheme and therefore, we cannot sustain the order passed by the Tribunal Decided in favor of Revenue.

Issues Involved:
1. Whether "aluminium grills" can be termed as "Extruded aluminium products" under Item Serial No. 7 of the Product Code 61 of the Duty Entitlement Passbook Scheme (DEPB Scheme).

Issue-wise Detailed Analysis:

1. Definition of "Extruded Aluminium Products":
The core issue in this appeal is whether "aluminium grills" can be classified as "Extruded aluminium products." The Tribunal had previously ruled in favor of the assessee, determining that aluminium grills fall under this category, thus entitling the assessee to benefits under the DEPB Scheme. The Revenue challenges this interpretation.

2. Facts of the Case:
The assessee manufactures aluminium grills from extruded aluminium sections and sought DEPB benefits for exporting these grills. The Customs Officer initially denied this benefit, classifying the grills as fabricated aluminium products, leading to an order of confiscation and penalty by the Commissioner of Customs.

3. Tribunal's Ruling:
The Tribunal overturned the Commissioner's order, holding that aluminium grills are extruded aluminium products and thus eligible for DEPB benefits. The Revenue appealed this decision.

4. Revenue's Argument:
The Revenue contends that aluminium grills are distinct from extruded aluminium products as defined in Entry 7 of Product Group Engineering (Code 61). They argue that only products directly obtained from the extrusion process without further alteration qualify for DEPB benefits. They supported their argument with literature on aluminium extrusion and relevant legal precedents.

5. Assessee's Argument:
The assessee argues that the term "extruded aluminium products" in Entry 7 is broad enough to include fabricated products made from extruded aluminium. They assert that the finished aluminium grills should be considered as extruded aluminium products.

6. Legal Interpretation of "Extruded Aluminium Products":
The court examined the process of aluminium extrusion and the definitions provided in various technical and legal sources. Extrusion involves forcing solid metal through a shaped orifice under compressive forces, producing standardized products like sheets, plates, rods, etc. Fabricated products, such as aluminium grills, are classified as engineered products, distinct from standardized extruded products.

7. Analysis of the DEPB Scheme:
The DEPB Scheme provides duty credit based on the deemed import content of the export product. Entry 7 of Product Code 61 specifically mentions "Extruded Aluminium products including pipes and tubes." The court noted that the inclusion of "pipes and tubes" suggests a restrictive interpretation, limiting the scope to standardized extruded products.

8. Precedents on Inclusive Definitions:
The court referred to several precedents to interpret the term "includes" in a restrictive sense. These cases establish that "includes" can sometimes mean "means and includes," thereby limiting the scope of the term to specific items.

9. Court's Conclusion:
The court concluded that aluminium grills, being fabricated products, do not fall under the category of extruded aluminium products as defined in Entry 7 of Product Code 61. Therefore, the assessee is not entitled to DEPB benefits for exporting aluminium grills.

10. Final Judgment:
The appeal filed by the Revenue is allowed. The Tribunal's judgment is set aside, and the Commissioner's order of confiscation and penalty is restored. No costs were awarded.

Summary:
The Supreme Court ruled that aluminium grills, being fabricated products, cannot be classified as "Extruded aluminium products" under Item Serial No. 7 of the Product Code 61 of the DEPB Scheme. Consequently, the assessee is not entitled to DEPB benefits for exporting aluminium grills. The Tribunal's decision was overturned, and the Commissioner's original order was restored.

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