1994 (12) TMI 149 - AT - Central Excise

Summary

Issues:
Classification of sub-assemblies for Black and White T.V. sets under Central Excise Tariff - Heading 8529.00, applicability of Notification No. 217/86, imposition of duty and penalty, appeal against order of Collector of Central Excise (Appeals), Pune.

Analysis:
The case involved an appeal against an order passed by the Collector of Central Excise (Appeals), Pune, regarding the classification of sub-assemblies for Black and White T.V. sets under Heading 8529.00 of the Central Excise Tariff. The appellants, engaged in manufacturing Television receiving sets, were accused of misclassification and non-payment of duty on sub-assemblies meant for captive consumption. The Assistant Collector had upheld the classification under Heading 8529.00, imposing duty and penalty. The Collector (Appeals) affirmed this decision, leading to the appeal before the Appellate Tribunal CEGAT, New Delhi.

During the appeal, the appellants argued that the sub-assemblies for colour T.V. sets were correctly classified under Heading 8529.00, but no similar product emerged during the manufacture of Black and White T.V. sets. They contended that the lower authorities failed to consider the distinct stages in the production process, where no sub-assembly as classified by them under Heading 8529.00 was involved. They highlighted the absence of a specific excise tariff for sub-assemblies and requested a re-examination of the case.

The Tribunal examined the submissions and found that the lower authorities had not adequately considered the manufacturing process of Black and White T.V. sets as described by the appellants. It was noted that no sub-assembly similar to those classified under Heading 8529.00 emerged during the production of Black and White T.V. sets. The Tribunal concluded that the impugned order lacked reasoning and application of mind, leading to its setting aside.

In light of the above, the Tribunal remanded the matter to the Assistant Collector for re-adjudication in accordance with the law. The appellants were granted a personal hearing, and both parties were allowed to present fresh evidence. The appeal was allowed by way of remand, providing an opportunity for a thorough reconsideration of the classification and duty implications of the sub-assemblies in question.