1996 (11) TMI 425 - AT - Central Excise

Summary

Issues: Classification of products under Central Excise Tariff, exemption claim under Board's order, refund claim, correct classification under Item No. 37AA, reliance on Board's letter, assessable value determination.

In the judgment delivered by the Appellate Tribunal CEGAT, New Delhi, two appeals were filed by M/s. Nissan Electronics (P) Ltd., Bombay. The first appeal, E/1067/87-B1, pertained to the classification of products described as tape-deck Model 607-807 for use in cars. The appellants claimed exemption under Board's Letter No. 15/2/63-CX, dated 30-5-1963, while the Department classified the goods under Item No. 37AA, denying the exemption. The second appeal, E/1065/87-B1, was a refund claim based on the classification under Item No. 37A and the exemption under the Board's order. Both appeals were heard together and disposed of by the common order of the Collector of Central Excise, Bombay, dated 17-10-1986.

During the hearing, the appellant's counsel argued that the goods were cassette tapes classifiable under Item No. 68 of the Central Excise Tariff, citing a Board's letter exempting tape playbacks under Item No. 37A. The respondent's representative contended that the goods were correctly classified under Item No. 37AA as they were used in cars, not as cassette tapes. The tribunal noted that the products, tape playbacks Model 607 and Model 807, lacked recording and erasing features, and were usable in cars, leading to their classification under Item No. 37AA.

The tribunal referred to the introduction of Item No. 37AA in the Central Excise Tariff from 1-3-1974, covering tape recorders, decks, and players. It emphasized that a tape player need not have a recording device, distinguishing it from tape recorders. The Board's letter of 30-5-1963, cited by the appellant, clarified that tape playbacks were not included in record players under Item No. 37A, but the tribunal deemed this irrelevant as the goods were classified under Item No. 37AA, not 37A.

The assessable value of the goods, ranging from Rs. 400 to Rs. 475, indicated they were equipment with tape playing capabilities, not cassette tapes. The tribunal affirmed the correct classification under Tariff Item 37AA and upheld the Collector of Central Excise, Bombay's decision. After considering all relevant factors, the tribunal found no errors in the Collector's view and dismissed both appeals accordingly.