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TMI Blog1992 (9) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... rap cannot be said to be "goods" and/or "Manufactured goods" within the meaning of the Central Excise Law and, hence, the goods were not exigible to any additional duty of customs under Section 3 of the Customs Tariff Act, 1975. The Assistant Collector of Customs has released the goods on the petitioner's executing a bond for payment of additional duty of customs under Entry No. 68 of the Central Excise Tariff. In the present petition, the petitioner has challenged the levy of additional duty of customs under Section 3 of the Customs Tariff Act, 1975 on the copper scrap imported by him in March 1980. The respondents however, contend that additional duty of customs is leviable on copper scrap and the same should be levied under Entry 26A (1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entry of the Central Excise Tariff, they will not fall under the Residuary Entry 68 of the Central Excise Tariff. 4. Central Excise Tariff Item 26A as it stood at the relevant time was as follows : Item No. Tariff Description Rate of duty 26A Copper 1. In any crude form including ingots, bars, blocks, slabs, billets, shots and pellets. 1A. Wire bars, wire rods and castings, not otherwise specified. 2. Manufactures, the following viz. plates, sheets, circles, strips and foils in any form or size. 3. Pipes and tubes. Explanation : 'Copper' shall include any alloy in which copper predominates by weight over each of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t time, i.e. prior to the amendment of 1-4-1981, sub-item (1) which deals with copper "in any crude form including ingots, bars, blocks, slabs, billets, shots and pellets" covers copper waste and copper scrap and hence additional duty of customs which is equivalent to excise duty leviable on similar goods if manufactured in India, has to be levied on copper scrap imported by the petitioner under Tariff Item 26A(1) of the Central Excise Tariff, as it stood at the relevant time. 5. This question directly arose in Writ Petition No. 2455 of 1982 and Writ Petition No. 2709 of 1982 before the Division Bench of K. Sukumaran Dr. B.P. Saraf, JJ, who, by their judgment dated 1st of July 1992, held that Item 26A prior to its amendment on 1-4-1981 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fines the word "crude" as, "raw, unprepared, not reduced to order or form, unfinished, undigested, ...... unrefined". The Shorter Oxford Dictionary defines the word 'crude' as, "in the natural or raw state, not changed by any process or preparation, not manufactured, refined, tempered, etc.... Sub-item (1) of Tariff Item 26A, therefore, deals with copper in its natural or raw form, not changed by any process or preparation before it is utilised for any manufacture. Scrap, on the other hand, arises either in the course of manufacture, or it may consist of old and worn out items of copper which are thrown away. Shorter Oxford Dictionary defines "scrap" as "remnant of fragmentary portion; remnant of metal produced in cutting or casting scrap i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... have got crystallised into the ultimate substance, after the crude gets processed for that purpose. In contrast, crude is a substance in its natural unprocessed state, not altered or prepared for direct use in the making of any product by any process. Out of the crude, the raw material must come, which goes to make up the product and in the course of making up of the product out of that raw material fragments discarded and left over things are called 'scrap'. Hence, it is not possible to state that scrap would fall within 'crude'." 8. A similar view has been taken by the Kerala High Court in the case of Coods Agro Chemicals Ors. (supra). The Kerala High Court, after considering the dictionary meaning of the word 'scrap', as also the wor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 68. This case, of course, is not directly on point. 10. In view of the nature of Entry 26A(1) of the Excise Tariff at the relevant time, the copper scrap imported by the petitioner prior to 1-4-1981, does not fall within Tariff Item 26A(1) as it stood at the relevant time, that is to say, prior to its amendment of 1-4-1981. The imported copper scrap will therefore fall under the Residuary Item 68. 11. The decision of the Division Bench of Sukumaran and Dr. Saraf, JJ. dated 1-7-1992 in Writ Petition Nos. 2709 of 1982 and 2455 of 1982 is therefore overruled. An importer of copper scrap prior to 1-4-1981 is liable to pay additional duty of customs under Entry 68 of the Central Excise Tariff. 12. The respondents are therefore directed to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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