2003 (4) TMI 301 - AT - Central Excise

Summary

Issues:
Classification of goods as parts of television sets or complete television sets.

Analysis:
The appellants filed an appeal against the order-in-appeal passed by the Commissioner (Appeals) where it was held that they were manufacturing television sets. The appellants claimed classification under Heading 8529 of the Central Excise Tariff as parts of television sets. The Revenue contended that the appellants were manufacturing parts of TV sets, assembling them in the factory, testing the TV sets, disassembling them, and then clearing them as parts. The issue in this appeal revolved around whether the goods cleared by the appellants should be classified as parts of TV sets or complete TV sets.

The appellants argued that they were manufacturing parts of television sets and clearing them to another unit where the parts were assembled to form complete TV sets. They relied on previous tribunal decisions to support their claim for classification as parts. The Revenue, on the other hand, asserted that the appellants were indeed manufacturing complete TV sets as they assembled all the parts, including remote controls, and tested the sets before disassembling them for clearance. The Commissioner (Appeals) found that the appellants manufactured and cleared all the parts of TV sets capable of performing the TV functions.

The Tribunal noted that the appellants assembled all parts in their factory, tested the compatibility and performance of each part, and then disassembled the sets for clearance. The only additional process in another factory was attaching wire connectors and antenna cables to the main chassis board. The Commissioner (Appeals) had a specific finding that the appellants manufactured and cleared all parts capable of functioning as a TV set, a finding unchallenged by the appellants. The appellants, in their cross-objection, admitted that they put all parts together to check if they could perform as a TV set.

Ultimately, the Tribunal concluded that the appellants were indeed manufacturing complete TV sets as they assembled all parts in their factory, leading to the TV sets' existence. Therefore, the impugned order classifying the goods as complete TV sets was upheld, and the appeal was dismissed.