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TMI Blog1987 (7) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... tube is delivered from the extrusion press, it is finished, that is, trimmed to a correct length and its nozzle is threaded to the appropriate specification. The petitioner says that the operation of extrusion is complete at this stage and the resultant product is known as an extruded tube comes into existence. This item is liable for excise duty under Item No. 27(e) of the Tariff as it stood then. 2. The said Item 27 also included sub-item (f) relating to containers made of aluminium, and there is an explanation purporting to define the expression containers before enactment of Finance (No. 2) Act, 1980 and it read as under : "Explanation-I. - Containers means containers ordinarily intended for packaging of goods for sale, including c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 980 the Government introduced in the Lok Sabha the Finance (No. 2) Bill 1980. The said Bill purported to propose certain amendments to the said Act which are relevant for the purpose herein, and are as follows : (1) The said Bill purported to insert in Section 2(f) of the said Act an additional sub-clause, viz. sub-clause (viii) which purported to provide as follows : "in relation to aluminium includes lacquering or printing or both of plain containers". (2) sub-item (f) of Item 27 was substituted as follows : "containers - plain, lacquered or printed or lacquered and printed". (3) In Explanation-1 the words "collapsible tubes" were inserted in the inclusive definition of the expression "containers"." The said Finance (No. 2) Bi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rinting or lacquering would be regarded as a process of manufacture. The effect of these changes, as far as the petitioner is concerned, was to increase the assessable value of the said collapsible tubes by including the costs of printing or lacquering which was not permissible prior thereto. 6. The petitioner-company, therefore, contended that the said declaration was not valid, and, therefore, till the President gave his assent to the said Act, on August 25, 1980, it was not open to the Excise department to recover any excise duty on the basis of the said purported change. Accordingly, the company preferred an application for refund of excise duty on December 16, 1980 and it claimed a sum of Rs. 9,16,678.01/- being the excise duty amoun ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under this Act." It is clear in the present case, that all that the said purported changes have done, is to shift by means of an artificial definition, the said tubes from sub-item (e) to sub-item (f), and by applying an artificial definition in the Explanation there to read with Section 2(f) of the said Act, increase the assessable value of the said goods. The said alterations, therefore, are alterations to the assessable value of the said goods and are neither a law providing for the imposition of duty or an increase in the duty. Therefore, it must be held that the said declaration was clearly ineffective in law, as far as the said changes were concerned. If, therefore, the declaration was clearly ineffective in law, certainly the coll ..... X X X X Extracts X X X X X X X X Extracts X X X X
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