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TMI Blog2021 (1) TMI 623X X X X Extracts X X X X X X X X Extracts X X X X ..... ISSIONER OF CUSTOMS, NEW DELHI [ 2015 (5) TMI 241 - SUPREME COURT] . LCD panels are classifiable under CTH 9013 8010 and parts of LCD panels are classifiable under CTH 9013 9010 - the classifications are to be under CTH 9013 8010 and CTH 9013 9010, the denial of exemption benefit to the appellant as per amendment Notification No. 92/2017-Cus. dated 14.12.2017 is without any factual or legal basis and requires to be set aside. Appeal allowed - decided in favor of appellant. - C/40017/2019-DB, C/40463/2020-DB - FINAL ORDER NOs. 40165-40166/2021 - Dated:- 15-1-2021 - MS. SULEKHA BEEVI C.S., MEMBER (JUDICIAL) AND MR. P. ANJANI KUMAR, MEMBER (TECHNICAL) Shri R. Parthasarathy, Advocate for the Appellant Shri S. Balakumar, Authorized Representative (A.R.) for the Respondent ORDER The issue involved in both these appeals being the same, they were heard together and are disposed of by this common order. 2. The issue relates to classification of LCD panels and parts of LCD panels. In Customs Appeal No. 40017 of 2019, the issue is with regard to the classification of LCD panels and the period of dispute is from January 2018 to February 2018. In Customs Appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 013. (v) The Department is of the view that CTH 9013 does not cover articles used for manufacturing televisions. The impugned goods are meant specifically for the manufacture of LCD/LED Televisions and LCD Televisions are classifiable under CTH 8528 72 18 and CTH 8528 73 10. The parts thereof are to be classified under CTH 8529. 3.2 Learned Counsel for the appellant submits that the LCD panels are correctly classifiable under Tariff Item 9013 8010 and parts thereof are classifiable under Tariff Item 9013 9010 for the following reasons : As per Rule 3(a) of the General Rules of Interpretation, the heading which provides the most specific description shall be preferred over heading of general description; The HSN Explanatory Notes to Rule 3(a) states that a description by name is more specific than a description by class and that if the goods answer to a description which more clearly identifies them, that description is more specific than one where identification is less complete; Here, the description Liquid Crystal Devices is more specific description by name. The impugned goods imported by the appellant squarely fall within the description of the LCD devices ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he decision of the Hon'ble Supreme Court in the above case, the Tribunal in the case of M/s. Samsung India Electronics P. Ltd. v. Commissioner of Customs, Noida [2015 (326) E.L.T. 161 (Tri. Del.)] held that the LCD panels used in television sets are to be classified under CTH 9013 only; The above decision has been followed in the case of M/s. Samsung India Electronics Pvt. Ltd. v. Commr. of Cus. (Air), Chennai [2016 (337) E.L.T. 87 (Tri. Chennai)]. These cases are squarely applicable to the present case as the products are identical; Though the Department appeals have been admitted, the Hon'ble Supreme Court has not passed stay order against the Tribunal decisions and merely filing of an appeal will not be sufficient ground not to follow the Tribunal decisions. The lower authorities are bound to follow the Tribunal decisions when the same has not been stayed by the Hon'ble Apex Court. 3.3 He prayed that the appeals may be allowed. 4.1 On behalf of the Department, Learned Authorized Representative (A.R.) Shri S. Balakumar appeared and argued the matter. It is submitted by him that the goods imported are specifically used for the manufacture of LCD/LE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CTH 8529. In the amendment Notification No. 92/2017, the Basic Customs Duty of goods falling under CTH 8529 was enhanced to 7.5% and goods that fall under CTH 9013 enjoy nil rate of duty; the appellants could not have changed the classification to enjoy the benefit of the Notification. This argument of the Department has been countered by the Learned Counsel for the appellant stating that there is no estoppel in taxation. 8.1 Be that as it may, we shall proceed to determine the correct classification of the impugned goods. 8.2 The relevant CTH are as under : 8528 Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television , whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus 8529 Parts suitable for use solely or principally with the apparatus of headings 8525 to 8528 9013 Liquid crystal devices not constituting articles provided for more specifically in other headings ; lasers, other than laser diodes; other optical ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nly under CTH 9013 and not CTH 8529. 9. Further, Explanatory Note of HSN reads as under: 90.13 Liquid Crystal Devices not constituting articles provided for more specifically in other headings; lasers, other than laser diodes; 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 - Lasers, other than laser diodes 9013.80 - Other devices, appliances and instruments 9013.90 - Parts and accessories In accordance with Chapter Note 5, measuring or checking optical appliances, instruments and machines are excluded from this heading and fall in heading 90.31. Chapter Note 4, however, classifies certain refracting telescopes in this heading and not in heading 90.05. It should, moreover, be noted that optical instruments and appliances can fall not only in headings 90.01 to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e of product in question, we revert to the tariff entries. It cannot be disputed that LCDs are specifically provided in Tariff Item 9013. The only condition is that such LCDs should not constitute articles provided more specifically in other headings. In the present case, it is also not in dispute that LCDs imported by the appellant did not constitute any such article which is more specifically provided in other headings. On the contrary, the Revenue wants to include in the same Chapter, i.e., Chapter 90, though under Entry 9028.90.10 as parts and accessories . The only reason for including the goods under Chapter Heading 9028 is that the LCDs were to be used in the electricity supply meters. However, Entry 9028 does not pertain to LCDs but gas, liquid, etc., and includes electricity supply meters as well. Merely because these LCDs are to be used as parts in the said electricity supply meters, can it be said that they are to be included in Entry 9028? Here, Note 2 of this Chapter Notes becomes 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ench on the very same issue would be applicable. 12. The Bench at Allahabad has also followed this decision in the case of M/s. Samsung India Electronics P. Ltd. v. Commr. of C.,C.Ex. S.T., Noida reported in 2018 (360) E.L.T. 1053 (Tri. All.). Learned Counsel for the appellant has, in addition, relied on the decision rendered in M/s. Videocon Industries Ltd. v. C.C.E. [2009 (2) T.M.I. 814 - CESTAT MUMBAI]. 13. Considering the arguments put forward by the Learned Counsel for the appellant with regard to the rules of interpretation and also following the decisions rendered by various Benches of the Tribunal in M/s. Samsung India Electronics P. Ltd. (supra) and M/s. Videocon Industries Ltd. (supra), we are of the considered opinion that LCD panels are classifiable under CTH 9013 8010 and parts of LCD panels are classifiable under CTH 9013 9010. We do not find any reason to deviate from the ratio laid down in the decisions relied by the Learned Counsel for the appellant. As we hold the classifications to be under CTH 9013 8010 and CTH 9013 9010, the denial of exemption benefit to the appellant as per amendment Notification No. 92/2017-Cus. dated 14.12.2017 is without any fa ..... X X X X Extracts X X X X X X X X Extracts X X X X
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