2020 (1) TMI 672 - AT - Central Excise

Classification of goods - colour Television (C.T.V.) sub assembly manufactured by the appellants and cleared by them - HELD THAT - Inasmuch as the goods being cleared from the assessee s factory were having all the essential character of CTV, the same were required to be assessed under Chapter Heading 8528.00. Inasmuch as the issue stands decided by the said decision of the Hon ble Supreme Court in the case of M/S SALORA INTERNATIONAL LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, NEW DELHI 2012 (9) TMI 276 - SUPREME COURT , where it was held that complete Television was manufactured by the appellant and the time of the parts of the TV set being transported from the factory of the appellant, the parts manufactured by it are already identified as distinct units, thus the Revenue had rightly classified the goods- product as complete Television set even though it was subsequently disassembled, there are no justifiable reason to take a view different than the one taken by the Hon ble Supreme Court. Appeal dismissed.

Summary

Issues:
Classification of goods as sub-assembly or complete television set under Central Excise Tariff Act, 1985.

Analysis:
The judgment pertains to a dispute regarding the correct classification of color Television (C.T.V.) sub-assemblies manufactured by the appellant. The issue revolves around whether the products should be considered as sub-assemblies of CTV or complete television sets. The appellant initially claimed the goods to be complete CTV units but later started clearing them as sub-assemblies. The Revenue raised demands against the appellant, asserting that the goods cleared were complete CTV sets. The Adjudicating Authority confirmed the demands, imposing penalties and interest. The order was challenged before the Tribunal.

Upon hearing both sides, it was observed that the appellant was manufacturing cabinets fitted with colored picture tubes, CTV chassis, and other components, which were being cleared to buyers for assembly. The Revenue contended that the goods constituted complete CTVs, falling under a specific chapter sub-heading, contrary to the appellant's claim. The Adjudicating Authority highlighted that the assemblies and sub-assemblies manufactured by the appellant had the essential characteristics of a TV receiver. The appellant supplied these components to buyers who assembled them into complete CTVs without substantial manufacturing activity at their end. Relying on a Supreme Court decision, the Adjudicating Authority held that the goods were fully manufactured CTV sets.

The appellant did not dispute the Supreme Court decision but argued that a factual difference existed, as in a previous case, the goods were unassembled after testing. However, this distinction was deemed insignificant as per interpretative Rule 2(a), requiring incomplete televisions with essential characteristics to be assessed as complete TVs when unassembled. The Tribunal cited precedents where similar decisions were upheld by the Supreme Court, emphasizing that parts cleared in semi-knocked down conditions should be treated as complete television sets. Consequently, the Tribunal found no reason to deviate from the Supreme Court's ruling and upheld the Commissioner's order, rejecting the appeal.

In conclusion, the Tribunal held that the issue was covered by the Supreme Court's decision and found no fault in the Commissioner's order. The appeal was dismissed, affirming the classification of the goods as complete television sets under the Central Excise Tariff Act, 1985.