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TMI Blog1990 (10) TMI 78X X X X Extracts X X X X X X X X Extracts X X X X ..... ported, customs duty and countervailing duty are paid. The process of manufacture is that by combination the raw materials are converted into ingots of aluminium nickel alloys. The aluminium content in ingots is more than 50% thereof by weight. The aluminium ingots are then broken into lumps and are put in a "jaw-crusher" machine for the purpose of pulverising. By this process, aluminium nickel powder comes into existence and the powder is used in various pharmaceutical, chemical and petroleum products. 2. Section 3 of the Central Excises and Salt Act, 1944 (hereinafter referred to as the 'Act') provides that there shall be levied and collected duties of excise on all excisable goods which are produced or manufactured in India at the rate ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar 1978, the Superintendent of Central Excise classified aluminium nickel powder manufactured and cleared by the Company under Item No. 68 of the First Schedule and called upon the Company to pay duty at the rate of 8% per annum ad valroem. The Company by letter dated August 19,1978 claimed that powder is not excisable goods and the process of powdering did not amount to manufacture. The Company also claimed that in any event, the duty is leviable under Tariff Item No. 27 and the Company is not liable to pay any duty in view of exemption notification. The Assistant Collector of Central Excise by order dated December 19,1978 did not accept the claim of the Company and held that duty is liable to be paid on manufacture of powder under Tariff ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the other hand, submitted that the view taken by the three authorities below does not suffer from any infirmity and is not required to be disturbed in exercise of writ jurisdiction. It was contended by Shri Desai that even if two views are possible it is not permissible to disturb the conclusion of the authorities as regards whether aluminium nickel powder is liable to duty under Tariff Item No. 68. In view of the rival submission, two questions which squarely fall for consideration are (a) whether aluminium nickel powder can be described as aluminium in any crude form, and (b) whether the process of converting ingots into powder can be considered as a manufacturing process liable to payment of excise duty. 5. Tariff Item No. 27(a)(i) re ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not defined under Tariff Item and, therefore, it is necessary to bear in mind the meaning which is understood in common parlance. By reading Tariff Item No. 27(a)(i), it is obvious that ingots, bars, blacks, etc. though are not in crude form and though are identifiable articles are treated as in crude form by artificial definition. The expression 'crude form' in its sweep takes into account aluminium in any shape or form including the ingots but such form or shape of articles of aluminium must be one which came into existence at the initial stage. As mentioned hereinabove, the ingots come into existence by combination of aluminium and nickel and the alloys by artificial definition are treated as aluminium in crude form. The ingots come ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and, therefore, is aluminium in crude form. The powder is used, as claimed by the Company, for production of pharmaceutical, chemical, petroleum and other products and we are in agreement with the authorities below that the ingots and the powder are two different and distinct articles and are so known in the market. Once, the ingots which comes into existence undergoes manufacturing process for manufacture of aluminium nickel powder, then not only the form is changed but the powder cannot attract the expression "aluminum in crude form". Shri Talyarkhan placed reliance upon the words "in any crude form" in entry to urge that the ingots and powder are merely forms and, therefore, must be treated as any crude form. We are unable to accept th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g process on the ingots and the article which comes into existence at the second stage cannot be treated as aluminium in any crude form. In our judgment, the authorities below were right in concluding that the manufacture of aluminium nickel powder attracts duty under Tariff Item No. 68 which is a residuary item and not under Tariff Item No. 27(a)(i) of the First Schedule. Once it is held that Tariff Item No. 27(a)(i) is not attracted, then the exemption notification is of no assistance to the Company. 8. Shri Talyarkhan then submitted that the conversion of ingots into powder does not amount to a process of manufacture inviting duty under the provisions of the Act. The learned counsel urged that by merely pulverising the ingots after bre ..... X X X X Extracts X X X X X X X X Extracts X X X X
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