JUDGMENT

The question for consideration is whether "Projection Television sets" manufactured by the respondent are the same as the "Broadcast Television receiver sets" for the purpose of earning exemption under the Central Excise laws. The Assistant Collector, Central Excise and the Collector of Central Excise (Appeals) answered the question in the negative and against the respondent. On further appeal by the respondent, the Customs, Excise and Gold (Control) Appellate Tribunal (the Tribunal) reversed the findings of the authorities below by its order dated March 5, 1990 and came to the conclusion that the "Projection Television Sets" are the same as "Broadcast Television receiver sets" as such the respondent was entitled to the exemption claimed. This appeal by the Central Excise Department through the Collector of Central Excise Meerut is against the order of the Tribunal.

2. The Projection Television sets manufactured by the respondent-company are sold under the brand names Hotline Projectavision 203, Hotline Projectavision 303, Hotline Projectavision 503 and Hotline Projectavision 222. A single set consists of a "projectionunit" and a screen. Different models have screens of different sizes. The screen size for the model Hotline Projectavision 203 is 200 CM (79"), for Hotline Projectavision 303, the screen size is 300 cm (119") etc. The projection-unit, which is placed at a distance from the screen, is designed to produce images up to 65 times the size of a conventional television. These sets are sold to video parlours, cinema halls, unversities and other institutions for catering to a large audience. According to the respondent the projectavision is designed to accommodate various inputs such as video cassette recorders, personal computer/IBM, Doordarshan signals, video Camera, video disc-player and others.

3. The excisable goods specified in Notification No. 68/86 dated February 10,1986 are exempt from payment of CentralExcise duty in terms of the said notification. Serial No. 19 in the said notification is as under :-

"19. 85.28 Broadcast television receiver sets (other than monochrome sets) of screen size exceeding 36 centimeters" Rupees 900 per set

Notification No. 160/86 dated March 1, 1986 contains the following entry at Serial No. 10;

"10. 85.28 (i) televison sets in combination with, video recording or reproducing appratus Twenty-five percent ad valorem

(ii) Video monitors and Video projectors Twenty-five percent ad valorem"

4. The claim of respondent for grant of exemption under Notification No. 68/86 was rejected by the Assistant Collector and the Appellate Collector on the ground that the respondent was manufacturing "Video projectors" and as such they were liable to pay central excise duty in terms of Notification No. 160/86. In substance the Departments case was that the goods manufactured by the respondent did not come within the category known as "broadcast television receiver sets".

5. According to the Assistant Collector inbuilt-technology of the projector television receiver set is different than that of a broadcast television receiver set. It was highlighted that the projection set has three cathode rays tubes whereas the ordinary set consists of only one such tube. The cathode-rays tubes used in both types of sets are entirely different in their shape, size and function. The Assistant Collector primarily decided against the respondent-company on the ground that the projection television set is not known as broadcast television receiver set in common parlance of the trade. He accepted the contention of the respondent that the projection television is a television receiver in the sense that it receives the video signals and the images of distant events and objects but he rejected the contentions of the respondents on the following reasoning

"But its function is not confined to receiving the images and making them Visible on the receiver set itself. It extends to their projection outside the receiver set. A ca