1999 (8) TMI 206 - AT - Central Excise

Summary

Issues:
Interpretation of Notification No. 87/89 - Whether the product 'radio cassette recorder' is covered at Sl. No. 1 or Sl. No. 14 of the Notification.

Analysis:
The appeal was filed by the Revenue against the order-in-appeal dated 31-5-1993 passed by the Collector of Central Excise (Appeals). The Collector held that the product 'radio cassette recorder' manufactured by the respondents is covered at Sl. No. 14 of the Notification No. 87/89, dated 1-3-1989. The Revenue argued that the product should be covered under Sl. No. 1 of the same notification, which includes goods falling under Chapter Heading 8527 of the Central Excise Tariff. The Revenue contended that the Collector did not interpret the exclusion clause provided under Sl. No. 14 of the Notification correctly. The Revenue prayed for the appeal to be allowed.

During the hearing, the issue at hand was whether the 'radio cassette recorder' should be classified under Sl. No. 1 or Sl. No. 14 of the Notification No. 87/89, dated 1-3-1989. The relevant portion of the Notification was presented, highlighting the descriptions and rates applicable to different categories of goods. The product in question, a radio cassette recorder, includes reception apparatus for radio broadcasting and sound recording/reproducing apparatus. It was noted that while Sl. No. 1 of the notification covers certain audio system components, Sl. No. 14 specifically addresses reception apparatus for radio broadcasting with sound recording or reproducing apparatus. As the product in question aligns with the description under Sl. No. 14, the impugned order was deemed appropriate. Therefore, the appeal filed by the Revenue was rejected.

In conclusion, the judgment focused on the correct interpretation of the Notification No. 87/89 regarding the classification of the 'radio cassette recorder'. By analyzing the specific descriptions and clauses under Sl. No. 1 and Sl. No. 14 of the notification, it was determined that the product in question falls under the latter category due to its features related to radio broadcasting reception and sound recording/reproduction apparatus. The decision to uphold the Collector's classification under Sl. No. 14 was based on the alignment of the product's characteristics with the criteria outlined in the notification, leading to the rejection of the Revenue's appeal.