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TMI Blog1994 (12) TMI 149X X X X Extracts X X X X X X X X Extracts X X X X ..... iff were served with a show cause notice dated 22-1-1992 alleging that they had classified `Sub-assemblies of Colour T.V. Sets meant for being supplied to their customers on payment of duty under Heading 8529.00 whereas they had been clearing similar sub-assemblies meant for captive consumption for the manufacture of Black and White T.V. sets without filing any classification list and without payment of duty. On the ground that in respect of the sub-assemblies the benefit of Notification No. 217/86 was not available on account of the final product viz. Black and White T.V. sets being exempt from payment of duty, the appellants were asked to show cause as to why duty amounting to Rs. 2,42,608/- on 905 pcs. of sub-assemblies for Black and Wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appellants had pointed out that the sub-assemblies for colour T.V. sets meant for clearance from the factory were classified by them under Heading 8529.00 but no similar final marketable product emerges during the course of manufacture of Black and White T.V. sets or before completion of the product after mounting of the picture tube and closing of the back cover of the cabinet. He contended that in passing the order the Collector (Appeals) had not applied his mind since he had failed to deal with the appellants contentions that no sub-assembly of the type cleared by them under Heading 8529.00 emerges at any intermediate stage in the manufacture of Black and White T.V. sets. He, therefore, pleaded that the impugned order may be set aside a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llowed by (iii) alignment of chassis and lastly (iv) by fixing back cover. No stage of sub-assembly activity comes during the course of manufacture of Black and White T.V. set and therefore question of its use captively during the course of manufacture of Black and White T.V. set does not arise at all. We have further to state in our reply that there were orders from some of our customers for supply of incomplete version of colour T.V. set and therefore we have supplied the same which consists of Plastic parts and Chassis but does not have a picture tube. Our customer being the manufacturer of T.V. sets while manufacturing colour T.V. set first takes out chassis, puts picture tube, puts back the chassis, aligns it and then fixes back co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f so-called sub-assembly comes next to that of T.V. Chassis is totally baseless and hence, imaginary. Even if we presume, but without admitting, that the said contention of the department is correct, the total duty so calculated and asked us to pay in the Annexure B to the said show cause notice becomes absurd as the same is based on total price of T.V. set less price of Picture Tube. We pleaded with the Assistant Collector that the said Show Cause-cum-Demand Notice dated January 22, 1992, be withdrawn." 4. It is evident that the Assistant Collector and also the Collector (Appeals) failed to take into account the various stages pointed out by the appellants in the manufacture of Black and White T.V. sets pointed out by the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X
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