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2017 (8) TMI 1267 - AT - Central ExciseClassification of goods - multi media speakers with FM radio - SSI exemption - use of brand name of others by GE in the manufacture of multi media speakers - whether the goods are classified under CETH 85184000 or under CETH 85279990? - Held that: - the product basically contains two speakers and a woofer. FM radio is built in, in the woofer. The whole set is a multi media speaker system generally connected to other devices like computers or audio players for sound output. A comparison of the above goods with multi media speakers + sub-woofer, without FM radio, indicates that both the products are almost identical except for the fact that in one, there is a an additional built in FM radio, in the sub-woofer - As clearly shown in the sales brochure, the main function of the product is being provided by speaker system with sub-woofer - similar issue of classification of multi media speakers having additional function of USB port and FM radio came up for consideration by the Tribunal in Logic India Trading Company [2016 (3) TMI 5 - CESTAT BANGALORE]. The Tribunal held that the impugned goods are speakers with added function and the main role of the item, in question, remains amplifying the sound received from outside source or from inbuilt feature. Applying the interpretative rules and section note 3 of Section XVI, the Tribunal held that the product should be classified as speakers only - The product should continue to be classified as speakers. SSI exemption - use of brand name - manufacture - Held that: - mere printing of brand name or packing will not amount to manufacture in case where there is no legal concept of “deemed manufacture”, specifically provided by any provisions applicable to the said product - The applicability of SSI exemption for the products manufactured by GE has to be re-verified with the details submitted by the GE to arrive at duty liability, if any. They have claimed that the turnover during the impugned periods is well below the threshold limit of ₹ 1.5 crores. This needs reverification and confirmation by the Jurisdictional officer. Penalty - Held that: - the appeal against penalty under Rule 26, filed by M/s Kaizen Computech Ltd. is also to be allowed. Appeal allowed in part and [part matter on remand.
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