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M/s. Samsung India Electronics Pvt. Ltd. Versus CC (Air). Chennai

2016 (3) TMI 252 - CESTAT CHENNAI

Classification - LCD Panel - Whether to be classified under Tariff Item 9013 8010 of the Customs Tariff Act and is entitled for the benefit of BCD exemption under Notification No. 24/2005 or under Tariff Item 8529 9090 - Held that: based on HSN which has described LCD and from the fact that the wordings contained in CTH 9013 8010 are different from other entries dealing with LCD Technology. Also Tariff Heading 9013 covers LCD not constituting Article provided for more specifically in other headi .....

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0 vis-`-vis their general coverage under CTH 8529. - Decided in favour of appellant with consequential relief - C/40731/2013 - Final Order No. 41842 / 2015 - Dated:- 29-12-2015 - SHRI R. PERIASAMI, TECHNICAL MEMBER AND SHRI P. K. CHOUDHARY, JUDICIAL MEMBER For the Petitioner : Shri R. Srinivasan For the Respondent : Ms. Indira Sisupal, AC(AR) ORDER PER P. K. CHOUDHARY The Appellant company is engaged in the manufacture of computer monitor and registered with the Central Excise Department for man .....

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BN07-00703A) FOR COMPUTER MONITOR and classified under Tariff item 90138010 of the Customs Tariff Act. The appellant also claimed the benefit of BCD exemption under Sl.no.29 of Notification no.24/2005-Cus. However, the assessing officer was of the view that the LCD Panels were more appropriately classifiable under Tariff item 85299090 and not under Tariff item 90138010. There was no revenue implication as the goods classifiable under CTH 85299090 were eligible for benefits of BCD exemption vide .....

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lant filed an appeal before the Learned Commissioner of Customs (Appeals), Chennai. 5. The impugned order was passed by the Ld. Commissioner of Customs (Appeals|), Chennai upholding the aforesaid Order in Original, confirming the classification of the imported goods under CTH 85299090. 6. Being aggrieved with the impugned order, the appellant files the present appeal. 7. The appellant was represented by Sri R. Srinivasan, Advocate, who contended that there is no revenue implication related to th .....

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shall be determined according to the terms of the heading of any relevant section or chapter note; that the expression Liquid Crystal Devices (LCD) has not been defined anywhere in the Section or Chapter Note. But the HSN describes the LCD as follows:- Liquid crystal devices consisting of a liquid crystal layer sandwiched between two sheets or plates of glass or plastics, whether or not fitted with electrical connections, presented in the piece or cut to special shapes and not constituting ar .....

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ding is to be preferred over a residuary heading. Various other contentions raised in the Grounds of Appeal were also reiterated. He relied on the Tribunal Delhi Bench recent decision in their own case in Tribunals Final Order No. C/A/52760 52780/2015 dated 10.06.2015, where the Tribunal on identical issue of classification of CED allowed their appeal. He relied following citations:- 1. Secure Meters Ltd. Vs. CCE 2015-TIOL-100-SC-CUS 2. Orient Paper Mills Vs. CCE 1991 (51) ELT 625 (Tri.) 3. Vid .....

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of raw materials as LCD Panel (90138010); that the registration certificate clearly shows that the impugned goods are solely or principally used for the manufacture of colour monitors as raw materials / parts; that the goods are therefore rightly classifiable under 8529 9090. She relied on the decision of the Hon ble Supreme Court in the case of Salora International Ltd. Vs. CCE - 2012 (284) ELT (3) S.C. 9. After having carefully gone through the records of the case and after hearing both sides, .....

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n the issue involved was identical and as to whether the classification of Imported LCD under chapter heading 9013 8010 vis-vis 8529 9090. The relevant portion of the said decision is reproduced below:- 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 LCD mod .....

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iece 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 own right and therefore a combination thereo .....

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ow 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 apparatus of this chapter or Section XVI 9013 .....

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s 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 85.29 covers them more specifically because the impugned LCDs ar .....

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thing 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 there are indeed a number of Liquid Crystal Devices which are prov .....

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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 : Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapte .....

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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 heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, fa .....

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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-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. v. CC, New Delhi - 2015 (319) E.L.T. 565 (S.C.), the Supreme Court had an occasion to decide the classification of LCDs which were parts of energy meters. Declari .....

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tute 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 pertain to LCDs but gas, liquid, etc., and includes electricity supply meters as well. Merely because these LCDs ar .....

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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 be classified with the said meter and, therefore, Chapter Entry 9028 would get attracted. However, this arg .....

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ble 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 that those parts and accessories which in themselves constitute article falling in any particular heading of this Chapter, the .....

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duced 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) or Chapter 84, 85 or 91 (other than Heading 8487, 8548 or 9033) are in all cases to be classified in their respective headings. Chapter Note 2(a .....

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