CE- Classification - TV sets disassembled and cleared to satellite units - to be classified as television and not parts - SC
THE appellant is a manufacturer of various components of television sets. The components are manufactured at its factory at Delhi. Thereafter, the said components are assembled in the same factory for the purpose of testing of each component and for checking the working of each television set. Thereafter the television sets so assembled are disassembled and then transported as parts to various satellite units of the appellant company at different places. In these satellite units, the separate components are re-assembled and, as per the appellant, some further processes are carried out in order to make those sets marketable.
The issue is whether such components, which are manufactured at and transported from the factory of the appellant at
Delhi are liable to be assessed as ‘Television Receivers' or as ‘Parts of Television Receivers'.
The Supreme Court in a judgement on 7th September held that they are to be classified as television and not parts. Once the Television Receivers are assembled or are made completely finished goods, the manufacturing process is over and we are not concerned as to what happens subsequently. Whether they are sent to the satellite units of the appellant in its complete form or in a disassembled form is irrelevant.
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