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2022 (3) TMI 1318 - AT - Central ExciseClassification of goods - PCB assembly, also known as T.V. chassis - sub-assembly of CTV, comprising of the chassis with cabinet, speakers and picture tube etc. - classifiable under sub-heading 8529.00 of the Excise Tariff or under Sub-heading 8528.00 of Central Excise Tariff Act, 1985 - applicability of Rule 2(a) of the Rules for the Interpretation of the Schedule to the Central Excise Tariff - N/N. 6/2002-CE dated 1.3.2002 (sl. No. 204) - HELD THAT - The observation of the Hon ble Apex Court in the case of M/s. Salora International Ltd. 2012 (9) TMI 276 - SUPREME COURT is somewhat different wherein the Hon ble Apex Court has observed that the complete TV was assembled thereafter it was tested and dissembled and cleared in SKD condition but it is not in the case in hand. In those circumstances, the clarification adopted by the Hon ble Apex Court in M/s. Salora International Ltd. is not applicable to the facts of the case in hand. Further, it is found that the learned AR has relied on the decision of this Tribunal in the case of M/S PANASONIC AVC NETWORKS INDIA CO. LTD. VERSUS COMMISSIONER OF CENTRAL EXCISE, NOIDA-I 2020 (1) TMI 672 - CESTAT ALLAHABAD . In that case also the fact recorded by this Tribunal is that the appellant has filed declaration that goods to be complete unit of CTV and same were being cleared as CTV only. As per section note 2 of section 16 of the Central Excise Act, the goods were rightly classifiable as parts and merit classification under heading 8529 of the Central Excise Tariff Act 1975. As it has been held that the goods in question are not complete TV sets, it has been cleared under SKD or CKD condition, therefore, the classification under chapter heading 8528.00 at Sl. No. 204 of the notification is not applicable to the facts of the case. It is held that the merit of the facts of the case are as that the appellant is clearing the TV chassis, sub-assembly of CTV, comprising of the chassis with cabinet, speaks and picture tube etc. are not colour TV and therefore are the parts of CTV merits classification under sub heading 8529.00 of Tariff Act 1975 - appeal allowed - decided in favor of appellant.
Issues Involved:
1. Classification of PCB assemblies (TV chassis) under the Central Excise Tariff Act. 2. Applicability of Rule 2(a) of the Rules for the Interpretation of the Schedule to the Central Excise Tariff. 3. Comparison with the case of M/s. Salora International Ltd. 4. Applicability of CBC circular no. 12/92/94-CE dated 3.2.1994. 5. Relevance of the decision in Share Medical Care v Union of India. 6. Examination of the facts by the Adjudicating Authority. 7. Correct classification under the Central Excise Tariff Act and Notification No. 6/2002-CE. Detailed Analysis: 1. Classification of PCB Assemblies: The appellant cleared PCB assemblies (TV chassis) and classified them under sub-heading 8529.00 of the Excise Tariff, which pertains to parts used solely or principally with apparatus of heading 8528.00. The Revenue argued that these were complete kits of TV sets (in SKD condition) and should be classified under sub-heading 8528.00 as per Rule 2(a) of the Rules for Interpretation of the Schedule to the Central Excise Tariff. 2. Applicability of Rule 2(a): The Tribunal examined the applicability of Rule 2(a) and concluded that the classification must first be tested against the relevant Section and Chapter Notes. According to Section Note 2 to Section XVI of the Tariff, parts of machines included in any headings of Chapter 84 or 85 should be classified in their respective headings unless a clear picture emerges from the Section and Chapter Notes. 3. Comparison with M/s. Salora International Ltd.: The appellant contended that the facts in the case of M/s. Salora International Ltd. were different as the TV receivers were complete and assembled, whereas, in the present case, the components were not complete TV sets. The Tribunal agreed that the facts were distinguishable and that the decision in M/s. Salora International Ltd. was not applicable. 4. Applicability of CBC Circular No. 12/92/94-CE: The appellant referred to CBC circular no. 12/92/94-CE, which clarified the application of Rule 2(a) for the classification of goods. The Tribunal found that the circular supported the appellant's contention that the goods were parts and not complete TV sets. 5. Relevance of Decision in Share Medical Care v Union of India: The appellant relied on the decision in Share Medical Care v Union of India, where the Supreme Court held that if an applicant is entitled to benefit under two different notifications, they can claim the more beneficial one. The Tribunal noted this decision while considering the appellant's alternate classification under sl. No. 205 of Notification No. 6/2002-CE, which prescribed a duty rate of 16%. 6. Examination of Facts by the Adjudicating Authority: The Adjudicating Authority observed that the appellant manufactured and tested complete TV sets, which were then disassembled and transported as parts. The Tribunal found that the appellant's goods were not complete TV sets at the time of clearance and, therefore, should be classified as parts. 7. Correct Classification under the Central Excise Tariff Act: The Tribunal held that the goods in question were not complete TV sets and were correctly classifiable under heading 8529.00 as parts. Consequently, the classification under heading 8528.00 at sl. No. 204 of Notification No. 6/2002-CE was not applicable. The Tribunal also acknowledged the appellant's payment of duty under sl. No. 205 of the notification, which prescribed a duty rate of 16%. Conclusion: The Tribunal concluded that the appellant's goods were parts of TV sets and should be classified under sub-heading 8529.00 of the Central Excise Tariff Act. The demand for duty under heading 8528.00 was set aside, and the appeals were allowed with consequential relief. The decision emphasized the importance of adhering to Section and Chapter Notes for classification and acknowledged the appellant's right to claim the more beneficial notification.
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