Remote control facility in television sets determines excise concession where matching hand units are separately cleared for use

Television sets manufactured with an inbuilt remote control receiver, and for which matching hand held units were separately cleared for use with those sets, were treated as television sets with remote control facility for excise classification. Separate sale of the hand units did not change the character of the sets where the goods were capable of remote operation and were marketed for use together. The concessional rate under Notification No. 87/89-C.E. meant for sets without remote control facility was therefore unavailable, and the Revenue succeeded.

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Issues: Whether television sets manufactured and cleared without handsets, but having an inbuilt remote control receiver and capable of being used with separately cleared hand held units, were entitled to the concessional rate applicable to TV sets without remote control facility under Notification No. 87/89-C.E. dated 1-3-1989.

Analysis: The entitlement to the notification depended on whether the goods were, in substance, television sets without remote control facility. The record showed that the sets manufactured by the respondents had an inbuilt remote control receiving system, that hand held units were also manufactured or cleared separately, and that the remote units were specific to the television sets of the respondents. The fact that the handsets were sold separately did not alter the character of the television sets when the goods were capable of remote operation and the buyers in practice purchased both together. The earlier decision relied upon by the respondents was distinguished because the separate clearance of hand held units was not shown there.

Conclusion: The television sets were held to be television sets with remote control facility and were not eligible for the lower concessional rate meant for sets without such facility.

Final Conclusion: The Revenue succeeded and the relief granted in the appellate orders was set aside.

Ratio Decidendi: Where television sets are manufactured with an inbuilt remote control receiver and the matching hand held units are separately cleared for use with those sets, the goods are treated as television sets with remote control facility for the purpose of the applicable excise notification.

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