TMI Blog2021 (4) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... MI 126 - HIGH COURT OF JUDICATURE AT MADRAS] . The appellants have been earlier importing the said items and the appellants vide its letter dated 30.11.2009 informed the Customs Authorities that since April 2009, they had seven instances of import of LCD and in five of them, the item was correctly dispatched as Liquid Crystal Display and in the remaining two, though, the imported item was merely a Liquid Crystal Display which was mentioned as LCD module incorrectly and that the imported LCDs were used in the manufacture of instrument cluster and that these are not part of speedometer - thus, the impugned order classifying the said goods under 90299000 is not legally sustainable Appeal allowed - decided in favor of appellant. - Customs Appeal No. 2066 of 2010 - FINAL ORDER NO. 20116/2021 - Dated:- 26-4-2021 - MR. S.S GARG, JUDICIAL MEMBER AND MR. P. ANJANI KUMAR, TECHNICAL MEMBER Shri Ravi Raghavan, Advocate for the Appellant Shri Narendrababu P Byahatti, Authorized Representative for the Respondent ORDER The present appeal is directed against the impugned order dated 30.07.2010 passed by the Commissioner of Customs (Appeals), Bangalore whereby the Com ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 004-VIL-18-CESTAT-DEL-CU). The said decision of the Hon ble Tribunal was challenged before the Hon ble Supreme Court and the Hon ble Aex Court vide its order dated 05.05.2015 in the matter of Secure Meters Ltd. vs Commissioner of Customs, New Delhi reported in 2015 (319) ELT 565 (SC) has reversed the order of the Tribunal and allowed the appeal filed by the Appellant therein and held that LCDs imported by the said Appellant were classifiable under chapter heading 9013.80 as liquid crystal devices. He further submitted that this issue is no more res integra after the decision of the Hon ble Apex Court in the Secure Meters Ltd. case. He also submitted that LCD is used to display various information according to its application. The LCD, driven by microcontroller, is used in the instrument clusters manufactured by the appellants, which in turn displays the Main Kilometer reading, Day Trip Reading Clock. It is his further submission that as per Rule 1 of General Rules of Interpretation, classification shall be determined according to the terms of the heading of any relevant section or Chapter Note. It is evident that LCDs are specifically provided in Tariff Item 9013. Moreover, as pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... violation of principles of natural justice, in view of the decision in the case of Zinc Products Vs UOI, 1992 (57) ELT 222 (mad). We also find that LCDs are specifically provided in Tariff Item No. 9013 and as per Note 2(a) attached to Chapter 90, parts and accessories which are goods included in any of the Heading of the said Chapter 90 are to be classified in their respective Headings. Here we may also take note of the Chapter Headings: Rate of Duty 9013 Liquid crystal devices not constituting articles provided for more specifically in other headings, lasers, other than laser diodes; other optical appliances and instruments, not specified or included elsewhere in this Chapter 9013 80 10 --- Liquid crystal devices (LCD) Free 9013 80 90 ---Other 7.5% 9013 90 -Parts and accessories 9013 90 10 --- for liquid crystal devices (LCD) Free 9029 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... also gone into the definition of LCD and observed as under :- 14. In Bloomsbury Dictionary of Science for Everyone , LCD and LED (Light Emitting Diode) are described in the following manner : LCD AND LED The two principal methods of forming numbers and letters on instruments such as calculators and digital watches. A basic pattern of seven bars is used to form the digits 0 to 9 and several letters. To form other letters and symbols, more than seven bars are required. In the LED (Light-Emitting Diode), the bars are made of a substance that permits an electric current to flow through in one direction only. A substance used in this way is called a diode. As the current flows, the diode gives off red, blue, yellow, or other coloured light, depending on the compound of which it is made. For example, Gallium Phosphide (GaP) emits a green glow. Electric circuits in the instrument selectively turn on the current to the bars to form the various numbers and letters. In the LCD (Liquid Crystal Display), the bars are made of liquid crystals. These are a kind of hybrid material, not quite a liquid and not quite a solid. They can t be poured readily, as with li ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er to Section Note 2(b) can arise only after ensuring that the parts are not covered by Section Note 2(b) [sic Section 3 Note 2(a)] which begins with the expression other parts meaning thereby that the parts which are not covered by Section Note 2(a) would be considered for coverage by Section Note 2(b). One cannot therefore, directly jump over to Section Note 2(b) without exhausting the possibility of Section Note 2(a). 18. The aforesaid view of ours gets strengthened from Part-III of Chapter Notes to Chapter 90. We may mention here that after studying the Chapter Notes, Note 2 whereof is reproduced above, there are certain guidelines provided under the caption General . Part-I thereof deals with General Content and Arrangement of the Chapter; Part-II deals with Incomplete or Unfinished Machines, Apparatus, etc.; and Part-III deals with Parts and Accessories. We fire reproducing here this portion in order to show how it supports the view which we have proposed to take as indicated above : (III) Parts and Accessories Subject to Chapter Note 1, parts or accessories identifiable as suitable for use solely or principally with the machines, appliances, instrum ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... vided for more specifically in other headings : lasers, other than laser diodes; 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. 9013.20 - Lasers, other than laser diodes. 9013.80 - Other devices, appliances and instruments. 9013.90 - Parts and accessories. In accordance with Chapter Note 5, measuring or checking optical appliances, instruments and machines are excluded from this heading and fall in Heading 90.31. Chapter Note 4, however, classifies certain refracting telescopes in this heading and not in Heading 90.05. It should, moreover, be noted that optical instruments and appliances can fall not only in Headings 90.01 to 90.12 but also in other headings of this Chapter (in p ..... 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