2002 (4) TMI 381 - AT - Central Excise

Summary

Issues:
1. Correct classification of display boards under central excise schedule.
2. Method of computation of assessable value.
3. Applicability of Sections 11AC and 11AB of the Central Excise Act.

Issue 1: Correct Classification of Display Boards:

The case involved appeals against an order by the Commissioner of Central Excise regarding the classification of Split Flat display boards manufactured by M/s. ICS Systems Pvt. Limited. The central issue was whether the goods should be classified under Heading 8531 (as contended by the assessee) or 9405.90 (as determined by the department). The Commissioner upheld the classification under 9405.90, but the assessee argued that the goods should be classified under Heading 8531 as electric sound or visual signalling apparatus. The HSN note to Heading 8531 was crucial in this debate, as it specifically included indicator panels and similar devices used for signalling purposes. The Tribunal ultimately accepted the appellant's contention, ruling that the goods fell under Heading 8531.80, directing the differential duty to be calculated accordingly. The Tribunal emphasized that the exclusion of non-LCD or LED indicator panels from Heading 8531.20 did not mean exclusion from Heading 8531 altogether, contrary to the Commissioner's decision.

Issue 2: Method of Computation of Assessable Value:

The Tribunal upheld the Commissioner's decision on the method of computation of value, agreeing that the price realization should be treated as cum duty, in line with a previous Tribunal order. The Tribunal found no reason to modify this aspect of the impugned order, as it was consistent with established principles.

Issue 3: Applicability of Sections 11AC and 11AB:

Regarding the applicability of Sections 11AC and 11AB of the Central Excise Act, the Tribunal dismissed the Revenue's objections, affirming that these provisions take effect prospectively unless stated otherwise in the statute itself. The Commissioner's decision that these provisions had no effect prior to their enactment was deemed correct. The Tribunal rejected the Revenue's contention to the contrary, concluding that the Revenue's appeal had no merit and was therefore dismissed.

In conclusion, the Tribunal allowed the assessee's appeal on the question of classification, directing the correct classification of the Split Flat display boards under Heading 8531.80. The Tribunal rejected the Revenue's appeal, confirming the method of computation of value and the non-applicability of Sections 11AC and 11AB prior to their enactment.