2018 (8) TMI 1298 - AT - Customs

Classification of imported goods - indicator panel incorporating Liquid Crystal Devices (LCDs) - The Chapter Heading indicated by the appellant was 8531 2000. Revenue felt that the goods under import are not indicators but LCD modules and therefore, classified the same under Heading 9033 0000 - whether the goods merit classification under CTH 9033 0000 or under CTH 8531 2000? Held that - On examination, it was found that the goods were in the nature of LCD modules having PCB connectors, backlights (optional), ICs (bonded & otherwise), Bezel (metal pressed components) and LCD, other small components like resistors, capacitors, voltage regulators etc. The commercial catalogue submitted by importer does not show it as indicator panel ; rather it shows it as LCD Module - any product is rightly identified by its name and use in the commercial parlance. It is evident that there is no relationship between the nomenclature of the goods imported as declared by the appellant and what is actually marketed by the appellant through their catalogue and website. Therefore, the imported item is a LCD Module, which is used in various instruments. Since these LCD modules are not meant for electrical signaling apparatus or for indicator panels of chapter heading 8531, they are not parts falling under heading 85319000. Since they are component parts to be used in wide range of machines, instruments or appliances, most of which are classifiable under chapter 90 of the Customs Tariff, and are being marketed as LCD modules or LCD alphanumeric modules, these are appropriately classifiable under heading 9033 0000. The impugned items have rightly been classified as parts under chapter heading 9033 000 as parts for machines, instruments or appliances of chapter 90 - appeal dismissed - decided against appellant.

Summary

Issues: Classification of imported goods under Chapter Heading 8531 2000 or 9033 0000

Analysis:
1. Facts of the Case: The appellants imported goods declared as "indicator panel incorporating Liquid Crystal Devices (LCDs)" for sale to industries. The dispute arose when the Revenue classified the goods under Heading 9033 0000 instead of 8531 2000 as claimed by the appellant.

2. Appellant's Argument: The appellant argued that the imported item is not of general use and should be classified under Heading 8531 2000, as done by other customs formations. They emphasized that the modules only act as a display system without any checking or measuring function.

3. Revenue's Argument: The Revenue contended that the goods should be classified under Heading 9033 0000 based on the Customs Tariff Act's entry for "Electrical sound or visual signaling apparatus." They pointed out that the item imported, an LCD module, was not covered under Heading 8531.

4. Judgment: The Tribunal examined the goods and found them to be LCD modules with various components. The commercial catalogue referred to them as "LCD Modules" used in telecom products, weighing machines, medical equipment, etc. The Tribunal noted the discrepancy between the appellant's declaration and the actual nature of the goods.

5. Classification Analysis: The Tribunal compared the definitions of Heading 8531 and 9033. They observed that the imported goods were more akin to LCD modules used in various instruments rather than indicator panels as claimed by the appellant. The HSN Explanatory Notes were relied upon to determine the classification.

6. Conclusion: The Tribunal upheld the classification under Heading 9033 0000 for parts used in machines, instruments, or appliances of Chapter 90. They rejected the appellant's argument based on the commercial parlance and lack of documentary evidence supporting classification under Chapter 85. The appeal was dismissed, affirming the order of the Commissioner (Appeals).

This detailed analysis highlights the key arguments, findings, and legal reasoning behind the judgment regarding the classification of imported goods under specific chapter headings, providing a comprehensive understanding of the case.