LexM/S. MSCO. PVT. LTD. versus UNION OF INDIA & ORS.
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A B 1146 M/S. MSCO. PVT. LTD. '· UNION OF INDIA & ORS. October 31, 1984 [E. S. VENKATARAMIAH AND R. B. MISRA, JJ.] The Custon1s Act, 1962-Words "industrial units" occuring in the Notifica- tion issued under the Act-Meaning of. Interpretat;on of statutes-Word occuring in a particular statute or statu- e tory instrument-Statute silent about definition of the Word-Whether it muit be interpreted according to the subject-n1atter of the statute and not according to the definition of the same word given in some other statute. D E F The appe1lant imported some stainless steel plates at concessional rate of import duty under a notification Which provided : (i) that the importer should import the goods for the manufacture of all or any of the articles specified in that notification ; (ii) that the articles so manufactured had to be sold to indus- trial units for their use ; (iii) that in case of violation of any one of the condi- tions above~mentioned, the importer was liable to pay, in respect of such quantity of goods as is not proved to have been utilised as per the notification, an amount equal to the difference between the duty leviable on such quantity but for the·exemption contained in the notification and that already paid at the time of importation. The appellant submitted. a certificate that the goods im- ported by him under the notification had bee11: consumed and/or utilised as per the notification. But the Assistant Collector of Cu~toms rejected the said certificate and held that tl'e appellant wa!I. liable to pay the deficient duty in respect of the goods which had been sold to hospitals/nursing homes since they were not '!industrial units" within the meaning of the Customs Act, 1962. The Collector of Customs (Appeals) confirmed the order in appeal. The revision petition of the appellant before the Customs. Excise and Gold (Control) Tribu .. nal, also failed. The appellant contended before this Court that the word 'industrial units' contained in the notification should be given the sa1ne meaning as is assigned to the word 'industry' in the Industrial Dispute Act, 1947. Dismissing the appeal, HELD : (1) The expression 'industry' has many meanings. It means 'skill', 'ingenuity', 'dexterity', 'diligence', 'systematic work or labour', 'habitual employment in the productive arts', 'manufacturing establishment etc. While G construing a word which occurs in a statute or a statutory instrument in the .. • !\ ,, ' w M(S. MSCO PVT. LTD. V. UNION 1147 absence of any definition in that very document it must be given the same mean- A ing which it receives in ordinary parlance or understood in the sense in \vhich people con,·ersant with the subject matter of the statute or statutory instrument understand it. It is hazardous to interpret a word in a accordance with its definition in another statute or statutory instrument and more so when such statute or statutory instrument is not dealing with any cognate subject. [1149 H; 1150 A-BJ Craies on statute Law [6th Edn.] p. 164 referred to. (2) 'Industry' in the wid~ sense of the term would be capable of compri- sing three different aspects: (I) raw materials which are an integral part of the industrial process, (2) the process of manufacture or production, and (3) the distribution of the products of the industry. An analysis of Entry 24 and 27 of List JI, Entry 52 of List I and Entry 33 of List 111 of the Constitution shows that 'industry' ordinarily means the process of manufacture or production. [1151 E-F] Sh. Tika Ran1ji & Ors. etc. v. The State of Uttar Pradesh & Ors. [19561 S.C.R. 393 at p. 420 followed. (3) It is true that in the Bangalore Water Supply & Sewerage Board, etc. v. R. Rajappa & Ors. [1978]3 SCR 207 this Court has held that hospitals would a!S:o come within the definition of the expression 'industry' given in the Industrial Dispute Act, 1947. But that definition cannot be used for interpreting the word 'industr:y' in a notification granting exemptiou from customs duty under the Customs Act, 1962. When the word to be construed is used in a taxing statute or a notification issued thereunder it should be understood in its co1nmcrcial -sense. [1151 B-CJ (4) The new definition given to the word 'industry' by ParJiament in the Industrial Disputes (Amendment) Act, 1982 (46of1982) also specifically excludes 'hospitals or dispensaries' from the category of 'industry'. It shows. that the n1eaning giv
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