1986 (4) TMI 155 - Commissioner - Central Excise

Summary

Issues: Classification of High Quality Colour Video Monitor under T.I. 37BB for duty payment.

Analysis:
The case involved the classification of High Quality Colour Video Monitors manufactured by M/s. Gujarat Communications & Electronics Ltd. The Department issued a Show Cause Notice questioning the classification under T.I. 68 and proposing T.I. 37BB instead. The Assistant Collector confirmed the classification under T.I. 37BB, leading to the appeal by the appellants.

In their appeal, the appellants argued that the monitors were Measuring Instruments for Video Production Lines, used in Television Broadcast Studios and Video Product Industries for quality measurement. They contended that the monitors were not Television Receivers and supported their claim with import details and a comparison table. During the personal hearing, the advocate reiterated these submissions and highlighted the differences between the product and Television Image and Sound Recorders, citing a relevant judgment and the Assistant Collector's own admission.

After reviewing the submissions and arguments, the Collector found merit in the appellants' contentions. He noted that the product did not possess the necessary features of Image and Sound to be classified under T.I. 37BB. The Customs authorities had also levied duty at the rate for T.I. 68, supporting the appellants' classification. The Collector agreed that the product was not commonly known as falling under T.I. 37BB and found the Assistant Collector's reasoning insufficient. Consequently, he set aside the Assistant Collector's order, granting relief to the appellants and admitting the appeal.

In conclusion, the judgment favored the appellants, ruling that the High Quality Colour Video Monitor should be classified under T.I. 68 as a Measuring Instrument for Video Production Lines, not under T.I. 37BB as Television Receivers/Recorders. The decision was based on the lack of Image and Sound features in the product, supported by customs duty charges and common understanding, ultimately setting aside the Assistant Collector's order.