Central Excise - Classification /excisability of various sub-assemblies emerging during the course of manufacture of Television Sets - Regarding - Central Excise - 12/12/94-CX

Central Excise - Classification /excisability of various sub-assemblies emerging during the course of manufacture of Television Sets - Regarding Circular No. 12/12/94-CX Dated 3-2-1994 [From F.No. 151/24/93-CX.4] Government of India Ministry of Finance (Department of Revenue), Central Board of Excise Customs, New Delhi Subject : Central Excise - Classification /excisability of various sub-assemblies emerging during the course of manufacture of Television Sets - Regarding. Representations have been received from the Consumer Electronics and TV Manufacturers Association that their member units who are engaged in the manufacture of black and white television sets (henceforth referred to as T.V.) have been asked to pay duty on black and white T.V. minus the picture tube. The process of manufacture of T.V. sets involves assembling of three main parts of TV. sets, i.e. Cabinet and back cover, picture tube and chassis and populated circuit board. The process of assembly consists of filling control panel on cabinet, fixing of picture tube, alignment of chassis and fixing of back cover. 2. The matter relating to the classification/excisability of various sub-assemblies emerging during the course of manufacture of T.V. has since been examined and it is observed that in trade, the Cabinet with chassis, speakers etc. (but without the picture tube) is traded as a sub-assembly, though the same has essential characteristics of a T.V. Thus by application of Rule 2(a) of Rules of Interpretation of the Tariff, a sub-assembly of the nature mentioned above when cleared as such, has to suffer its duty liability at the rates applicable to a T.V. If such sub-assembly comes into being in an integrated factory and is used captively for making the final product, then duty will not be leviable on the sub-assemblies but will be charged at the rate applicable, when the T.V. is removed after completion of further manufacture.