Customs, Excise and Gold Tribunal - Delhi
Nissan Electronics P. Ltd. vs Collector Of Central Excise on 4 November, 1996
Equivalent citations: 1997(91)ELT201(TRI-DEL)
ORDER Lajja Ram, Member (T)
1. These are two appeals filed by M/s. Nissan Electronics Pvt. Ltd. being aggrieved with the common order-in-appeal, dated 30-10-1986 passed by the Collector of Central Excise (Appeals), Bombay.
2. The matter relates to the interpretation of Notification No. 160/77-C.E., dated 18-6-1977, as amended by Notification No. 224/83-C.E., dated 18-8-1983 which provided concessional rate of central excise duty to the following goods:
"Tape recorders (including cassette recorders and tape decks), tape players (including cassette players) and combination sets of any of the aforesaid articles and transistor sets."
Which were classifiable under Item No. 33A and Item No. 37AA of the First Schedule to the Central Excises and Salt Act, 1944 (hereinafter referred to as the Tariff')- The goods manufactured by the appellants had been described by the Collector of Central Excise (Appeals) in his order as under :
"(1) 4 band transistor radio with cassette record player, turn table and speaker Model No. MTS 600 and (2) 4 band transistor radio with cassette record player with turn table and without speaker Model No. MTS 600."
The appellants had claimed the benefit of concessional duty under Notification No. 160/77-C.E., dated 18-6-1977 (as amended). The Collector of Central Excise (Appeals) did not agree with the appellants' contention that the attachment of turn table or record player to the transistor radio will not take their product out of the purview of the said exemption Notification No. 160/77-C.E.
3. Shri Gopal Prasad, Advocate, appearing for the appellants in both the appeals stated that the goods, as mentioned in their classification list, are 4 band transistor radio with brand name "Bush" (with cassette recorder player, turn table and speakers Model No. MTS 600) and 4 band transistor radio brand named "Bush" (or Regelect of Fujisan) with cassette recorder player, with turn table and without speakers Model MTS 600. It was his submission that combination of turn table will not make any difference to the classification of the transistor radio for the purposes of Notification No. 160/77-C.E. He submitted that turn table was only a record player and was only an additional attachment combination to the transistor radio with cassette recorder player. He relied on the Tribunal's decision in the case of Philips India Ltd. v. Collector of Central Excise, Pune -1996 (81) E.L.T. 375 (Tribunal).
4. In reply, Shri P.K. Jain, SDR, stated that the Notification No. 160/77-C.E. was specific to the tape recorders (including cassette recorders and tape decks, tape players (including cassette players), and combination sets of any of the aforesaid articles and transistor sets. The scope of the exemption notification could not be extended. The exemption notification had to be construed strictly and combination with the turn table is outside the purview of the exemption notification, aforesaid. He submitted that the matter has been analysed correctly by the Collector of Central Excise (Appeals) and there was no ground for interfering with his order. He pleaded for the rejection of both the appeals.
5. We have carefully considered the matter. The exemption Notification No. 160/77-C.E., dated 18-6-1977 (as amended) provided concessional rate of central excise duty to the following goods :
"Tape recorders (including cassette recorders and tape decks), tape players (including cassette players), and combination sets of any of the aforesaid articles and transistor sets."
6. These goods were classifiable either under Item No. 37AA which covered tape recorder (including cassette recorders and tape decks), and tape players (including cassette players), or Item No. 33A of the Tariff which extracted below:
Item No. 37AA - TAPE RECORDERS
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Item No. Tariff Description Rate of Duty
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37AA. Tape Recorders (including Forty per
Cassette Re- lorem.
cent ad va-
corders and Tape Decks)
and Tape
players (including Cassette
Players).
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Item No. 33A - WIRELESS RECEIVING SETS
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Item No. Tariff Description Rate of duty
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33A. Wireless receiving sets,
all sorts, including any
combination of two or more
of the following, namely,
broadcast television receiver
sets, radios (including transistor
sets), gramophones (including record
players, record playing decks and
record changing decks), tape
recorders (including cassette
recorders and tape decks) and
tape players (including cassettee
players) in each case whether with
or without laudspeakers -
(1) Broadcast television receiver Thirty per cent
sets ad valorem.
(2) Radios (including transistor Forty per cent
sets) ad valorem.
(3) Radiograms (including radio or Forty per cent sets
transistor with extra space in ad valorem.
cabinet for fitting in record
players or record changers)
(4) Others Forty per cent
ad valorem.
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7. It is seen while the whole of the Tariff Entry 37AA was covered by the said exemption notification, in so far as the goods covered by Item No. 33A are concerned, it did not cover the whole of the tariff entry. From Item No. 33A only transistor sets were included in the description as given in the Table annexed to that Notification No. 160/77-C.E.
8. Among other items gramophones (including record players, record playing decks and record changing decks) were covered under Item No. 33A but they did not figure in the description as given in the Table annexed to Notification No. 160/77-C.E. It is an admitted position that the goods of the appellants were transistor radio with cassette recorder players, turn table with or without speakers. The learned SDR had in our view correctly submitted that the exemption notifications had to be construed strictly. The learned Advocate when submitting that the addition of turn table and the speakers with the combination of transistor [radio] and cassette recorder player will not take them out of the purview of the exemption, wants us to extend the area of exemption which is not possible under law. We do not agree with his submission that the benefit of notification is available to the products even when it includes the items not specified in the exemption.
9. A reading of the notification will show that the combination has to be of the tape recorders (including cassette recorders and tape decks) and that of the tape players including cassette players. The expression 'combination sets' relates only to these products i.e., tape recorders (including cassette recorders and tape decks) and tape players (including cassette players).
10. Transistor set could be either with the tape recorder or with the tape player or with the combination of both (including the respective items specifically included within the expressions "tape recorders" as well as "tape players"). The transistor set could be a part of any of the above combinations. As the turn table which the appellants have described as record player is neither mentioned specifically nor is a part of the combination, as mentioned in the notification, we consider that the goods in question are not covered by the description, aforesaid, and as such were not eligible for the exemption under Notification No. 160/77-CE., dated 18-6-1977, as amended.
11. The learned Advocate had referred to the Tribunal's decision in the case of Philips India Ltd. v. Collector of Central Excise, Pune -1996 (65) ECR 119 (Tribunal), wherein the issue for consideration before the Tribunal was whether radio sets including transistor sets, as mentioned in the Notification No. 56/93-C.E., dated 28-2-1993 could be covered when in such radio sets including transistor sets there is an attachment of sound recording or reproducing apparatus. The expression used in Notification No. 160/77-CE. had already been extracted above. In the products before us, turn table i.e. record players had been specifically mentioned in the Tariff Entry No. 33A which were specifically excisable and dutiable under that item and the scope of the exemption could not be extended beyond what is provided in the notification. The learned SDR had mentioned that if the scope of the exemption is extended, then there will be no limit and it could also be argued that if there is a television set with the transistor set and with the tape players then the same could also be eligible for the concession under that notification which according to him would be an absurd proposition. We consider that the Tribunal's decision in the case relied upon, refer to different goods, different notifications and was rendered in an entirely different context. The question before the Tribunal was that merely because of the fact that the radio set is fitted with sound recording or reproducing mechanism could it be taken away from the purview of Notification No. 56/93-C.E., dated 28-2-1993 (refer Para 14 of the order). The Tribunal observed that by holding that the goods manufactured by the appellants before them in that case were radio sets in view of the fact that they were capable of receiving the radio broadcasting will not enlarge the scope of the notification.
12. In the case before us, turn table (record player) is not the same as the cassette recorder/player (in fact the true expression is 'cassette recorders or cassette players' as given in Item No. 37AA). The addition of the turn table with or without speakers in the combination of transistor set and cassette recorder/cassette player will in our mind take the products out of the purview of exemption under Notification No. 160/77-C.E.
13. The Collector of Central Excise (Appeals), after analysing the product in question had given a decision that since the words 'turn table and record player' are not covered by the description given in the notification in question, the combination of a tape recorder /cassette recorder/tape decks or tape players or transistor set with turn table of record player, would not be eligible for the concessional rate of duty provided in the notification in question. After analysing the notification in question and taking note of the goods under consideration, we find that the view taken by the Collector of Central Excise (Appeals), is correct. The case law relied upon by the learned Advocate is not relevant to the facts involved in this case.
14. Taking all the relevant considerations into account, we do not find any merit in both these appeals and the same are rejected.