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2024 (4) TMI 729 - AT - CustomsBenefit of exemption from Customs Duty - Validity Of Original re-assessment orders - Modification of self assessment made by the appellant claiming the benefit of exemption under Sl. No. 29 and 30 of Notification No.24/2005-Customs as amended - Classification of impugned goods viz. “Open Cells” under CTH 85.24 and in classification of “associated parts of Open Cells” under CTH 85.29 - whether the imported goods is the ‘Liquid Crystal Device’ or not - HELD THAT:- On careful reading of the impugned order passed by the learned Commissioner of Customs (Appeals), it transpires that he has given a specific finding that there is no dispute in the classification of impugned goods viz. “Open Cells” under CTH 85.24 and in classification of “associated parts of Open Cells” under CTH 85.29. Further, he had stated that the issue in contention is whether exemption under Serial No. 29 & 30 of Notification No.24/2005-Customs dated 01.03.2005 is applicable to the impugned goods or not. In answering to the issue in dispute, learned Commissioner of Customs (Appeals), had concluded that “Open Cell” cannot be considered as the Liquid Crystal Display (LCD) itself, as certain other components have to be attached to convert it into a fully functional LCD. We also find that such an examination has not been carried out. This is for the reason that firstly, the description of the goods specified in the exemption entry at Sl. No. 39 viz., ‘Liquid Crystal Devices’ has not been explained to state whether the imported goods is the ‘Liquid Crystal Device’ or not. Instead, it has been simply stated that the imported goods are not a fully functional ‘Liquid Crystal Display’, as open cell needs to be added with certain other components to make it so. Even the original authority did not examine these aspects despite the claim made by the appellants that ‘Open Cell’ is a ‘Liquid Crystal Device’ in terms of HSN Explanatory note to the heading 8524. The facts of the case further indicate that in the Original order dated 17.11.2022, customs duty exemption benefits under Sl. No.515A and 516 of Notification No.50/2017-Customs dated 30.06.2017 have been extended, whereas in the Original order dated 29.11.2022, merit rate of duty has been applied without extending any duty exemption benefit, while reassessing the B/Es u/s 17(5) ibid, in contrary to the declaration made for self assessment of goods by the appellants u/s 17(1) ibid. In this context, the learned Commissioner of Customs (Appeals), has not examined in detail how the exemption was allowed for imported goods under one B/E and in other B/E the same was rejected, without verifying the fulfillment of the exemption entries under Sl. No.515A and 516 of Notification No.50/2017-Customs dated 30.06.2017 which are subject to certain conditions under Customs (Import of Goods at Concessional Rate of Duty) Rules, 2017, and upheld this contradictory original orders, in the same Order-in-Appeal i.e., impugned order dated 21.02.2023. Thus, in our considered view is a clear case of non-application of the mind and thus the impugned order dated 21.02.2023, is liable to be set aside on these grounds alone. From the arguments advanced by the Advocates for the appellants, explaining in detail the relevant customs tariff entries and the Chapter 85 and 90, introduction of Chapter Note 7 chapter 85 and the explanation for the insertion of new CTH 85.24 and the entries therein, legislative history of ‘open cell’, ‘technical literature and explanation’ in the form of an affidavit duly notarized stating that open cell are used for Television or monitor or display screen application and the various process involved in manufacture of such articles, concluding that open cell and panel are both LCD devices; various decisions of the Tribunal and the judgements of the Hon’ble Supreme Court relied upon by them, there is legal force in the argument that the exemption benefit under Sr. No.29 & 30 of the Notification No.24/05-Cus., dated 01.03.2005 should be extended to the impugned goods. We are also of the considered view that the authorities below in reassessment of impugned goods u/s 17(5) ibid, are required to pass a reasonable order, which is of a speaking nature, conforming to the requirements of the definition of ‘assessment’ which include such ‘reassessment’. Hence, it is imperative that amongst other issues, tariff classification of imported goods and exemption or concession of duty issued under notifications issued under Section 25 ibid are required to be examined and determined in order to fulfill the requirements of reassessment in terms of Section 2(2) ibid. We are of the considered view that the impugned order passed by the learned Commissioner (Appeals) cannot be sustained on merits. However, we are also of the considered view that in order to examine the various issues of reassessment of impugned goods covered under the two Bills of Entry (B/E) No. 9574139 dated 16.07.2022 and B/E No.2453614 dated 15.09.2022 for deciding upon the eligibility to Customs duty exemption benefits under Sl. No. 29 and 30 of Notification No.24/2005-Customs dated 01.03.2005, as amended, the matter needs to be decided afresh in de novo proceedings by the original authority. Therefore, the impugned orders are set aside and the appeals are allowed in favour of the appellants by remanding the matter for a fresh decision by Original Authority after duly taking into consideration the various submissions made by the appellants and the points advanced by Revenue in these appeals before the Tribunal. In the result, the appeals are allowed by way of remand for fresh de novo proceedings in the above terms.
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