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TMI Blog2015 (10) TMI 2258X X X X Extracts X X X X X X X X Extracts X X X X ..... LCDs are outside the scope of this Section which covers Chapter 84 and 85 only. (iii) In the case of Videocon Industries Ltd. Vs. CCE - 2009 (92) RLT 383 - LCDs have been classified under CTH 9013 and not under CTH 8529. (iv) The adjudicating authority in the impugned order relied upon the judgement of CESTAT in the case of M/s Secure Meters Ltd. Vs. CC, New Delhi - 2004 (169) ELT 63 (Tri.-Del.) but that decision of CESTAT has since been altered by Supreme Court vide order dated 5.5.2015 in Civil Appeal No. 7526 of 2004 by holding the LCDs for energy meters to be classifiable under CTH 9013. (v) The reliance by Revenue on Regulation (EU) No. 1202/2011 of 18 November 2011 of the European Union is misplaced because their description of sub-heading CTH 8529 90 is not the same as the description under CTH 8529 90 in Indian Customs Tariff Schedule 4. Per contra, Revenue has contended that: (a) CTH 9013 specifically excludes LCDs which constitute articles provided for more specifically in other headings and as these LCDs are without any doubt parts of LCD televisions, they are more specifically covered under 85.29. (b) The Supreme Court judgement in the case of Secure Meters ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pugned goods are clearly liquid crystal devices (LCDs). That the impugned goods (which Revenue calls LCD modules) are LC devices is not seriously contested by Revenue also and therefore any elaboration on this point is shunned. The only issue which now remains to be decided is whether these LCDs are covered CTH 9013 or 8529. The relevant parts of CTH 9013, 8528 and 8529 are reproduced below for convenience: Chapter Heading Photographic, medical, measuring & etc. instruments 9013 Liquid Crystal devices not constituting articles provided for more specifically in other headings; ;lasers, other than laser diode; other optical appliances and instruments, not specified or included elsewhere in this Chapter. 9013.10 - Telescopic sights for fitting to arms; periscopes; telescopes designed to form parts of machines appliances, instruments or apparatus of this chapter or Section XVI 9013.20.00 - Lasers, other than laser diodes 9013.80 - Other devices, appliances and instruments 90138010 Liquid Crystal devices (LCD) 9013.80.90 - Other 8528 Monitors and projectors, not incorporating television reception apparatus; rec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... parts of LCD TV. It is thus obvious that between CTH 9013 and CTH 8529, the impugned LCDs are far more specifically provided for in CTH 9013 than under in CTH 85.29. 6. The reference to Section Note 2(b) of Section XVI of Customs Tariff Schedule was made by Revenue in support of its contention. That Section Note (2) is reproduced below: "Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: (a) Parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; (b) Other parts, if suitable for use solely or principally with a particular kind of machine or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8539 as appropriate. However, parts which are equally suitable for use pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... omes important since LCDs are used in the electricity supply meters only as parts thereof. Note 2(a) stipulates that parts and accessories which are goods included in the heading of the said Chapter, i.e., Chapter 90, are to be classified in their respective headings. Going by the plain reading of Note 2(a) it is clear that LCDs, which are goods and are used as parts in the final product mentioned in Chapter 90, namely, electricity supply meters, are to be classified in its respective heading. Respective heading, which is specifically provided, is 9013. 16. It was sought to be argued by Ms. Kiran Suri that as per Note 2(b), when these LCDs are used solely for particular instrument, namely, electricity supply meter, it has to be classified with the said meter and, therefore, Chapter Entry 9028 would get attracted. However, this argument loses sight of the fact that Note 2(b) relates to 'other parts and accessories', namely, it would apply to those parts and accessories for which Note 2(a) is inapplicable. Once we find that in the present case Note 2(a) squarely applies, the irresistible conclusion is that the goods will be classified in Tariff Item 9013, which is the spe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... llows from the said Supreme Court judgement that the description "parts suitable for use solely or principally with LCD TV" does not cover LCDs for LCD TVs as specifically as the description of CTH 9013 which covers LCDs by name and devotes a sub heading (90138010) exclusively therefor. 8. Revenue also referred to the decision of European Union (supra). Although the decisions of other Customs administrations can be a useful guide, they have no binding effect on India Customs. On the other hand, ratio of Supreme Court's decisions is binding. That apart, it is seen that, for example, U.K Customs description of CTH 8529 is as under: 8529 Parts suitable for use solely or principally with the apparatus of heading 8525 to 8528. 8529 10 - Aerials and aerial reflectors to all kinds; parts suitable for use therewith 8529 90 - Other 8529 90 90 - Cabinets and cases Electronics assemblies Other 8529 90 92 15 LCD modules Solely consisting of one or more TFT glass or plastic cells, -not combined with touch screen facilities, -with one or more printed circuits boards with control electronics for pixel addressing ..... X X X X Extracts X X X X X X X X Extracts X X X X
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