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M/s Samsung India Electronics Pvt Ltd, M/s Moser Baer India Ltd Versus Commissioner of Customs, Noida

2015 (10) TMI 2258 - CESTAT NEW DELHI

Classification of Liquid Crystal Devices (LCDs) - Appellants sought classification of LCD under Heading 90138010 and states that LCDs are outside the scope of Section XVI of Customs Tariff Schedule which covers Chapter 84 and 85 only - Revenue classified them under CTH 852990.90 on grounds that these are parts suitable for use solely or principally with LCD TV of CTH 8528 and Note 2 of Section XVI gets attracted.

Held That:- LCDs are specifically mentioned in CTH 9013 as it has LCDs b .....

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(90138010) exclusively for it – Decided in favour of assessee. - C/710-726/2009, C/532-534/2010 & C/116/2012 - F. Order No. 52760-52780/2015 - Dated:- 10-6-2015 - G Raghuram, President And R K Singh, Member (T) For the Petitioner : Shri S Vasudevan, Adv For the Respondent : Ms Disha Jain, Adv ORDER Per R K Singh The only issue in these appeals is the classification of Liquid Crystal Devices (LCDs) imported by the appellants. While the appellants sought classification of LCD under Heading 9013 .....

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of Chapter 90 and therefore LCDs are outside the scope of this Section which covers Chapter 84 and 85 only. (iii) In the case of Videocon Industries Ltd. Vs. CCE - 2009 (92) RLT 383 - LCDs have been classified under CTH 9013 and not under CTH 8529. (iv) The adjudicating authority in the impugned order relied upon the judgement of CESTAT in the case of M/s Secure Meters Ltd. Vs. CC, New Delhi - 2004 (169) ELT 63 (Tri.-Del.) but that decision of CESTAT has since been altered by Supreme Court vide .....

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for more specifically in other headings and as these LCDs are without any doubt parts of LCD televisions, they are more specifically covered under 85.29. (b) The Supreme Court judgement in the case of Secure Meters Ltd. (supra) is not directly applicable to these cases because in that case the dispute was classification of LCDs imported for manufacture of energy meters which were themselves covered under the same chapter (Chapter 90) and therefore attracted Note 2 to Chapter 90 for the purpose .....

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goods are not merely LC panels but "LCD modules" which constitute articles provided for more specifically under CTH 8529 as the parts suitable for use solely or principally with LC television. 5. We have considered the contentions of both sides. It is a fact that goods imported are not merely liquid crystal panels but articles comprising liquid crystal panel, driver, circuit, backlight unit, circuitry PCB and inverter etc. all in a metal casing. The Revenue calls these articles 'LC .....

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cular purpose, specially a piece of mechanical or electronic equipment". There is no doubt that the impugned goods (which have liquid crystal panels along with several other components) are made for a particular purpose (for LCD TV) and therefore they are clearly covered under the scope of the expression "liquid crystal device" (LCD). Indeed even the components of the impugned goods like liquid crystal panel, driver, backlight unit, inverter etc. are nothing but devices in their o .....

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CTH 9013, 8528 and 8529 are reproduced below for convenience: Chapter Heading Photographic, medical, measuring & etc. instruments 9013 Liquid Crystal devices not constituting articles provided for more specifically in other headings; ;lasers, other than laser diode; other optical appliances and instruments, not specified or included elsewhere in this Chapter. 9013.10 - Telescopic sights for fitting to arms; periscopes; telescopes designed to form parts of machines appliances, instruments or .....

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8525 to 8528 8529.10 - Aerials and aerial reflectors of all kinds; parts suitable for use therewith 8529.90 - Other 8529.90.10 - For communication jamming equipment 8529.90.20 - For amateur radio communication equipment 8529.90.90 - Other It is evident that liquid crystal devices (LCDs) are specifically mentioned in CTH 9013. Therefore CTH 9013 would cover them unless it can be demonstrated that they are more specifically provided for in other headings. The Revenue's contention is that CTH .....

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010 exclusively covers only liquid crystal devices (LCDs) and nothing else. However, there are liquid crystal devices which are known by specific names, for example, LCD television, energy meters (having LCDs) which, though liquid crystal devices, are more specifically covered under 85.28 and 90.28 respectively and therefore would get out of the scope of CTH 9013. Similarly even a watch can be a liquid crystal device but is classified under CTH 9012 being more specifically covered there. Thus th .....

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b heading exclusively for LCDs only, their coverage under CTH 85.29 can be only on the ground that the general description of CTH 8529 would cover LCDs as parts of LCD TV. It is thus obvious that between CTH 9013 and CTH 8529, the impugned LCDs are far more specifically provided for in CTH 9013 than under in CTH 85.29. 6. The reference to Section Note 2(b) of Section XVI of Customs Tariff Schedule was made by Revenue in support of its contention. That Section Note (2) is reproduced below: " .....

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able for use solely or principally with a particular kind of machine or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8539 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517; (c) All other parts are to be classified in headin .....

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o because Note (1) (m) of Section XVI clearly states that Section XVI does not cover articles of Chapter 90. Indeed by virtue of this Section Note [(1(m)] and in view of the fact that, as discussed earlier, the impugned LCDs are more specifically covered under 9013 80 10 vis-a-vis their general coverage under CTH 8529, they would get classified under CTH 9013 rather than CTH 8529. 7. In the case of M/s Secure Meters Ltd. Vs. CC, New Delhi - 2015 (319) ELT 565 (SC) , the Supreme Court had an occa .....

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present case, it is also not in dispute that LCDs imported by the appellant did not constitute any such 'article' which is more specifically provided in other headings. On the contrary, the Revenue wants to include in the same Chapter, i.e., Chapter 90, though under Entry 9028.90.10 as "parts and accessories". The only reason for including the goods under Chapter Heading 9028 is that the LCDs were to be used in the electricity supply meters. However, Entry 9028 does not pertai .....

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fied in their respective headings. Going by the plain reading of Note 2(a) it is clear that LCDs, which are goods and are used as parts in the final product mentioned in Chapter 90, namely, electricity supply meters, are to be classified in its respective heading. Respective heading, which is specifically provided, is 9013. 16. It was sought to be argued by Ms. Kiran Suri that as per Note 2(b), when these LCDs are used solely for particular instrument, namely, electricity supply meter, it has to .....

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............. 19. This contains a general explanation to Chapter Note 2 and mentions that where parts or accessories identifiable as suitable for use solely or principally with the machines, appliances, etc., they are to be classified with those machines/appliances. However, what is important is that immediately thereafter it is clarified that this general rule would not apply in certain circumstances. Sub-para of the above takes things beyond the pale of any doubt by making it crystal clear tha .....

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r Chapter 90 while in the present case LCD TVs fall under CTH 85.28. For the ease of reference Chapter note 2(a) to Chapter 90 is reproduced below: "2(a) Parts and accessories which are goods included in any of the headings of this chapter or of Chapter 84, 85 or 91 (Other than (other than Heading 8487, 8548 or 9033) are in all cases to be classified in their respective headings." Thus parts and accessories which are goods included in any of the heading of this Chapter (i.e. Chapter 90 .....

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