2017 (6) TMI 413 - AT - Customs

Classification of imported goods - Liquid Crystal Devices (LCDs) - classified under CTH 9013 80 10 or under CTH 8529 9090 - Held that - the issue herein is squarely covered by the precedent order of this Tribunal in the case of 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 , where it was held that decision given in case of M/s Secure Meters Ltd. Vs. CC, New Delhi 2015 (5) TMI 241 - SUPREME COURT followed wherein parts suitable for use solely or principally with LCD TV were stated not to cover LCDs for LCD TVs as specifically as description of CTH 9013 covers LCDs by name and devotes a sub heading (90138010) exclusively for it - the issue is squarely settled in favor of the appellant-assessee and LCD imported by them are classifiable under CTH 9013 80 10 - appeal allowed - decided in favor of appellant.

Issues Involved:
1. Classification of Liquid Crystal Devices (LCDs) imported by the appellants.
2. Applicability of CTH 9013 versus CTH 8529 for the classification of LCDs.
3. Interpretation of Section Note 2(b) of Section XVI of Customs Tariff Schedule.
4. Relevance of the Supreme Court judgment in the case of Secure Meters Ltd. v. CC, New Delhi.
5. Consideration of decisions by other Customs administrations, such as the European Union.

Issue-wise Detailed Analysis:

1. Classification of Liquid Crystal Devices (LCDs) Imported by the Appellants:
The core issue in this appeal is the classification of LCDs imported by the appellants. The appellants sought classification under Heading 9013 80 10, while the Revenue classified them under CTH 8529 9090, arguing that these are parts suitable for use solely or principally with LCD TVs of CTH 8528.

2. Applicability of CTH 9013 versus CTH 8529 for the Classification of LCDs:
The Tribunal found that the issue was covered by a precedent order dated 10.06.2015, where it was held that the imported goods, comprising liquid crystal panels, driver, circuit, backlight unit, circuitry PCB, and inverter in a metal casing, were indeed Liquid Crystal Devices (LCDs). The Tribunal concluded that CTH 9013 specifically mentions LCDs and includes a sub-heading exclusively for LCDs (9013 80 10). In contrast, CTH 8529's description as "parts suitable for use solely or principally with the apparatus of Headings 8525 to 8528" is more general. Therefore, LCDs are more specifically provided for under CTH 9013 than CTH 8529.

3. Interpretation of Section Note 2(b) of Section XVI of Customs Tariff Schedule:
The Revenue referred to Section Note 2(b) to support their contention. However, the Tribunal noted that Section Note 2(b) deals with the classification of parts of certain machines under Chapters 84 and 85. Since Section XVI does not cover articles of Chapter 90, this note was deemed inapplicable. The Tribunal emphasized that Note (1)(m) of Section XVI explicitly states that Section XVI does not cover articles of Chapter 90, reinforcing that the impugned LCDs should be classified under CTH 9013.

4. Relevance of the Supreme Court Judgment in the Case of Secure Meters Ltd. v. CC, New Delhi:
The Tribunal referred to the Supreme Court judgment in the case of Secure Meters Ltd., where it was held that LCDs used in energy meters were classifiable under CTH 9013. The Supreme Court had clarified that parts and accessories which are goods included in any of the headings of Chapter 90 or Chapters 84, 85, or 91 are to be classified in their respective headings. The Tribunal found that this judgment applied mutatis mutandis to the present case, indicating that LCDs suitable for use solely or principally with LCD TVs are more specifically covered under CTH 9013.

5. Consideration of Decisions by Other Customs Administrations, such as the European Union:
The Revenue also referred to decisions of the European Union. The Tribunal acknowledged that while such decisions can be useful guides, they are not binding on Indian Customs. The Tribunal noted that, for example, the U.K. Customs description of CTH 8529 specifically covers LCD modules, but no such sub-heading exists in the Indian Customs Tariff. Therefore, the Tribunal held that the impugned LCDs are classifiable under 9013 80 10.

Conclusion:
Following the earlier ruling of the Tribunal and the analysis above, the appeal was allowed, and the impugned order was set aside. The appellant was entitled to consequential benefits, if any. The Tribunal concluded that the LCDs imported by the appellants are classifiable under CTH 9013 80 10.

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