EXCISE DUTY ON TELEVISION PARTS
The Supreme Court last week dismissed the appeal of Salora International Ltd, manufacturer of various components of television sets, and ruled that it was liable to pay excise duty on the units sent to its branches in other parts of the country. The company manufactured components in its Delhi factory and checked each part. The sets were assembled and then disassembled and transported to other centers. There, the parts are reassembled and the complete units are made marketable goods. The question in this case was whether the components which are manufactured and then transported are in the category of ‘television receivers’ or ‘parts of television receivers’ for the purpose of central excise.
The court held that the goods are ‘television receivers’ and not parts. All the parts of the television sets were assembled and thoroughly checked and marked and then only they were transported.
“Once the receivers are assembled or are made completely finished goods, the manufacturing process is over and we are not concerned with as to what happens subsequently,” the court said.