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TMI Blog2021 (11) TMI 958X X X X Extracts X X X X X X X X Extracts X X X X ..... nd with inseparable PCB" under Customs Tariff Heading 85229000." 2.1 Appellants filed B/E No. 6374102 dated 17.08.2016 for clearance of goods described as " Liquid Crystal Devices- TFT - LCD 4.8 IN " quantity declared is 3072 pieces and assessable value declared is Rs. 37,62,746/ - (USD-54988 CIF) on the basis of invoice no. 9211400 dated 06.08.2016. The importer classified the said goods under CTH 90138010 and claimed. BCD 'NIL' duty vide notification no. 24/2005 (Sr. No. 29). 2.2 The Shed Officer observed that in the invoice the description mentioned is" Liquid Crystal Display" whereas in the Bill of Entry the description mentioned is " Liquid Crystal Devices". The goods were examined and it was found that the imported goods are "Liquid Crystal Displays" attached with inseparable PCB making it part of some equipment. Importer vide letter dated 19.08.2016 stated that the said goods are required for manufacturing car audio assembly. 2.3 On the basis of the letter dated 19.08.2016, revenue was of the view that the imported goods being part of Car Audio/Video Players (classifiable at CTH 8519 or 8521) classifiable at CTH 85229000 with merit duty. 2.4 After hearing the ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... It is settled law that the goods need to be classified as imported and not on the basis of end use. * The issue on classification in present case stands settled by the following decisions - * Secure Meters Ltd. [ 2015 (319) E.L.T. 565 (S.C.); * Samsung India Electronics Pvt. Ltd [2015 (326) E.L.T. 161 (Tri. - Del.)] * Samsung India Electronics Pvt. Ltd. [2016 (337) ELT 87 (Tri. - Chennai)] * Samsung India Electronics Pvt. Ltd. [2018 (360) ELT 1053 (Tri. - All)] * Videocon Industries Ltd. [2009 (2) TMI 814 - CESTAT Mumbai (1)] * Varroc Engineering P. Ltd. [2019 (366) ELT 170 (Tri. - Mumbai)] * Moser Baer India Ltd.[2017 (8) TMI 979] * Moser Baer India Ltd. [2018 (361) ELT 908 (Tri. - All)] * Genus Power Infrastructure Ltd[ 2016 (9) TMI 469 - CESTAT Mumbai] * The decision of Supreme Court in the case of G.S.Auto relied by the revenue is distinguishable and not applicable to present case. 3.3 Arguing for the revenue learned authorized representative submits as follows: * at the time of examination it was observed that imported goods are 'LCD attached with inseparable PCB' making it part of some equipment though it was declared as Liquid Crystal Devices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... letter dated 29.08.2016 of the supplier also states that the item under import is attached with PCB which functions as voltage stabilizing filter for incoming power source from external device. Thus, it is clear that it is distinct part of the audio system and therefore the same is rightly classifiable under Customs Tariff Heading 85229000." 4.3 While upholding the order of Deputy Commissioner, Commissioner (Appeal) has observed as follows: "5. I have gone through the facts and submissions of the case. I find that the appellant is engaged in manufacture of car audio / infotainment system and had imported 'liquid crystal displays with inseparable PCBs which were to be used as parts of car audio assemblies. I find that it is the contention of the appellant that since the imported goods i.e. liquid crystal display is designed and used for stated particular purpose it constitutes a device by itself and since there is specific entry of such liquid crystal devices under heading 90138010, it should be classified under that heading only. I find that Section XVI (Chapter 84 and chapter 85) of Import Tariff covers "Machinery and mechanical appliances, electrical equipment; parts the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... achines, instruments or apparatus of that kind; (c) All other parts and accessories are to be classified in heading 9033. Going by the plain reading of above two criteria prescribing the manner as to how parts of equipment / apparatus of Chapter 85 vis-à-vis chapter 90 are to be classified, it is apparent that the criteria of chapter 90 will be applicable only in cases where the main equipment is also classifiable under chapter 90. All the contentions of the appellants and judgements referred covers the situation where the main equipment was classifiable under chapter 90 and by virtue of Note 2 to Chapter 90, the parts which themselves were goods i.e. LCDs were classified under Heading 9013. In the case at hand the goods are parts / accessories / assemblies of the main equipment of heading 8519 i.e. Sound Recording or Reproducing Apparatus (Car Audio) and therefore by virtue of Note 2(b) to Section XVI, being suitable for use solely or principally with the particular kind of machine i.e. Car audio has to be classified under heading 8522. 6. I find that the imported goods are specifically designed suitable for use solely as 'parts of car audio/infotainment system ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ted goods as "LCD Module". In our view the term is wide enough and cannot be limited to mean the part of car audio/ video assembly. The observations made by the Deputy Commissioner for holding the classification under chapter 85 do not flow from any evidence or literature but is based on his opinion. Just because the PCB is attached to the LCD, will make the LCD a part solely for use in car audio/ video assembly, is the observation made. LCD is only the display device to display the parameters intended to be displayed. It can be used with hundred of devices for displaying the parameters. While distinguishing the decision of Secure Meters he admits multiple uses of LCD. The reason stated by the deputy commissioner for distinguishing the decision in the case of Secure Meters, was rejected by the CESTAT Delhi Bench in case of Samsung Electronics India Pvt Ltd, stating as follows: "The Revenue has tried to distinguish this judgment of Supreme Court by stating that it referred to Note 2(a) of Chapter Note 90 while was applicable in that case as the energy meters also fell under Chapter 90 while in the present case LCD TVs fall under CTH 85.28. For the ease of reference Chapter Note 2( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 liquids, nor are their molecules locked in place, as with true solids. But the molecules can be rotated slightly by an electric current. When no current flows, the bars are not noticeable, because they reflect light to the same extent as the rest of the display surface. But when a current flows through a bar, its molecules rotate and its ability to reflect light is reduced. That bar appears darker than the area around it and forms part of a number or letter. You can produce a similar darkening effect, called polarization, with Polaroid sunglasses. Hold the glasses several centimeters from one eye and look through one lens at a shiny, sunlit surface. Rotate the lens and observe the darkening. Liquid crystals can be made to order to do a particular job. For example, one kind of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cessories. 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, instruments or apparatus of this Chapter are classified with those machines, appliances, etc. This general rule does not, however, apply to : (1) Parts or accessories which in themselves constitute articles falling in any particular heading of this Chapter or of Chapters 84, 85 or 91 (other than the residual Headings 84, 85, 85.48 heading 84.14; transformers, electromagnets, capacitors, resistors, relays, lamps or valves, etc., remain classified in Chapter 85; the optical elements of Heading 90.01 or 90.02 remain in the headings cited regardless of the instruments or apparatus to which they are to be fitted; a clock or watch movement is always classified in Chapter 91; a photographic camera falls in Heading 90.06 even if it is of a kind designed for use with another instrument (microscope, stroboscope, etc.) (2) Parts or accessories suitable for use with several categor ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , Headings 90.15, 90.18 or 90.27). This heading includes :
(1) 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 articles described more specifically in other headings of the Nomenclature.
xx xx xx xx"
As per this, LCD would be covered by 'other devices' mentioned in 9013.80. That is precisely the case of the appellant.
21. The upshot of the aforesaid discussion leads to the conclusion that the view taken by the Tribunal in the impugned judgment is unsustainable in law. We, thus, allow the appeal, set aside the orders of the authorities below and hold that LCDs imported by the appellant were classifiable under Chapter Heading 9013.80."
4.6 In our view the issue is squarely covered by the said decision of Hon'ble Apex Court, and the goods imported would be correctly classifiable under heading 90138010 as claimed by the Appellants.
5.1 Thus we do not find any merits in the impugned order and set aside the same. Appeal is allowed.
(Order pronounced in the open court) X X X X Extracts X X X X X X X X Extracts X X X X
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