2019 (1) TMI 671 - AT - Customs

Classification of imported item - Liquid Crystal Devices cut to special shapes - whether Liquid Crystal Devices cut to special shapes are covered under heading 9013 as claimed by the Appellant or under heading 8714 as per the department? - Held that - These LCDs can be used for other purposes also viz. computer monitors, television, instrument panels, video games, clocks, watches etc. and therefore those are not suitable to be used solely or principally with the articles of Chapter 87 and therefore it can t be classified under CTH 8714. Merely because they were used as parts in dashboards of motorcycle, the could not be classified under Heading 8714. It cannot be disputed that LCDs are specifically provided in tariff item 9013. Only conditions is that such LCDs should not constitute articles provided more specifically in other headings. The LCD imported by the Appellant did not constitute such article which is more specifically provided in other headings. The only reason for including the goods under Chapter Heading 8714 is that LCDs were to be used in the motorcycles. The tariff entry 8714 does not pertains to LCD but parts and accessories of vehicles of heading 8711 to 8713. In nowhere include LCD or the dash board of Motorcycle specifically. Appeal allowed - decided in favor of appellant.

Issues Involved:
1. Classification of Liquid Crystal Devices (LCDs) under the appropriate customs tariff heading.
2. Eligibility for the benefit of notification 24/2005 (Sr. No. 29).

Detailed Analysis:

1. Classification of Liquid Crystal Devices (LCDs) under the appropriate customs tariff heading:
The primary issue is whether the LCDs imported by the appellant should be classified under heading 9013 as "Liquid Crystal Devices" or under heading 8714 as "parts and accessories of vehicles."

Appellant's Argument:
The appellant argued that the imported LCDs should be classified under Chapter Heading 90138010, which pertains to "Liquid Crystal Devices" as per the Harmonized System of Nomenclature (HSN) explanatory notes. According to the appellant, the LCDs are without electrical connections, presented in pieces or cut to special shapes, and consist of a liquid crystal layer sandwiched between two sheets of plastic.

Department's Argument:
The department contended that the LCDs are complete devices used for motorcycles and should be classified under Chapter Heading 8714990 as "parts and accessories of vehicles."

Tribunal's Analysis:
The tribunal examined the HSN explanatory notes and found that the LCDs imported by the appellant met the description under heading 9013, which includes "Liquid Crystal Devices not constituting articles provided for more specifically in other headings." The tribunal noted that the LCDs could be used for various purposes such as computer monitors, television, instrument panels, video games, clocks, and watches, and thus, they are not solely or principally used with motorcycles.

The tribunal also referred to a Supreme Court decision in the case of Secure Meters Ltd. vs Commissioner of Customs, New Delhi, where it was held that LCDs should be classified under Chapter Heading 9013.80 and not under headings meant for parts and accessories of specific devices.

Conclusion:
The tribunal concluded that the LCDs imported by the appellant should be classified under Chapter Heading 9013 and not under 8714, as the LCDs do not fulfill the conditions specified for classification under heading 8714.

2. Eligibility for the benefit of notification 24/2005 (Sr. No. 29):
The appellant claimed the benefit of notification 24/2005 (Sr. No. 29) for the imported LCDs.

Department's Argument:
The department rejected the appellant's claim, arguing that the LCDs are complete devices used for motorcycles and do not qualify for the benefit under the said notification.

Tribunal's Analysis:
The tribunal found that the appellant had indeed produced the relevant documents, including drawings and designs, before the Adjudicating Authority, contrary to the observations made by the Commissioner (Appeals). The tribunal also noted that the LCDs imported by the appellant did not constitute articles provided more specifically in other headings and were specifically provided under tariff item 9013.

Conclusion:
The tribunal allowed the appeal filed by the appellant, concluding that the LCDs imported by the appellant are classifiable under Chapter Heading 9013 and are eligible for the benefit of notification 24/2005 (Sr. No. 29).

Final Order:
The appeal filed by the appellant is allowed, and the LCDs imported by the appellant are to be classified under Chapter Heading 9013, making them eligible for the benefit of notification 24/2005 (Sr. No. 29). The decision was pronounced in court on 11/01/2019.

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