2023 (3) TMI 1338 - SC - Customs

Classification of imported goods - LCD panels - classifiable in Chapter Heading 9013.8010 of the First Schedule to the Customs Tariff Act, 1975, as Liquid Crystal Devices or classifiable as 85.29 parts of goods falling under heading 85.28? - HELD THAT - When goods are excluded from a particular chapter, the pull in through a note has to be narrowly construed, as otherwise, the basis of exclusion would be defeated, and the earlier note (of exclusion) rendered redundant. Finally, Secure Meters 2015 (5) TMI 241 - SUPREME COURT is decisive on the question that LCDs are not articles provided more specifically in other headings , i.e., other than 90.13. Furthermore, the fact that LCDs could be used for purposes other than television sets or audio sets is also concluded because, in that decision, its use in meters was in issue. The CESTAT s reasoning and conclusions, in both cases, that the LCD sets were under Chapter 90, Entry 9013.8010, is sound and unexceptionable. - appeal dismissed.

Summary

Issues Involved:

1. Classification of imported LCD panels by M/s Videocon International.
2. Classification of imported LCD panels by M/S Harman International (India) Pvt. Ltd.

Summary:

Issue 1: Classification of imported LCD panels by M/s Videocon International

The revenue challenged the CESTAT's decision that classified the LCD panels imported by Videocon under Chapter Heading (CH) 9013.8010 as "Liquid Crystal Devices." The revenue argued that these panels should be classified under CH 8529 as parts of television sets falling under heading 85.28. The CESTAT had set aside the demand by the revenue and upheld that the proper classification was under CH 9013.8010. The Supreme Court upheld CESTAT's decision, emphasizing that the specific description under CH 9013.8010 should be preferred over the general description under CH 8529. The Court noted that Note 1(m) to Chapter 85 excludes articles of Chapter 90, and thus, the LCD panels fall under CH 9013.8010.

Issue 2: Classification of imported LCD panels by M/S Harman International (India) Pvt. Ltd.

The revenue contested the CESTAT's decision that classified the LCD panels imported by Harman under CH 9013.8010. The revenue contended that these panels should be classified under CH 8519 or 8522 as parts of car audio or video players. The CESTAT upheld Harman's contention that the goods were classifiable under CH 9013.8010. The Supreme Court supported the CESTAT's ruling, stating that the specific description under CH 9013.8010 takes precedence. The Court reiterated that Note 1(m) to Chapter 85 excludes articles of Chapter 90, and the LCD panels, being complete articles capable of multiple uses, should be classified under CH 9013.8010.

Conclusion:

The Supreme Court dismissed the revenue's appeals, affirming that the LCD panels imported by both Videocon and Harman are correctly classified under Chapter Heading 9013.8010. The Court emphasized the importance of specific descriptions in classification and the exclusion of Chapter 90 articles from Chapter 85, as per Note 1(m). The decisions of the CESTAT in both cases were upheld.