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TMI Blog2021 (4) TMI 1194X X X X Extracts X X X X X X X X Extracts X X X X ..... violation of principles of natural justice, in view of the decision in the case of ZINC PRODUCTS VERSUS UNION OF INDIA [ 1991 (2) TMI 126 - HIGH COURT OF JUDICATURE AT MADRAS] . The appellants have been earlier importing the said items and the appellants vide its letter dated 30.11.2009 informed the Customs Authorities that since April 2009, they had seven instances of import of LCD and in five of them, the item was correctly dispatched as Liquid Crystal Display and in the remaining two, though, the imported item was merely a Liquid Crystal Display which was mentioned as LCD module incorrectly and that the imported LCDs were used in the manufacture of instrument cluster and that these are not part of speedometer - thus, the impugned order classifying the said goods under 90299000 is not legally sustainable Appeal allowed - decided in favor of appellant. X X X X Extracts X X X X X X X X Extracts X X X X ..... ms, New Delhi (2004-VIL-18-CESTAT-DEL-CU). The said decision of the Hon'ble Tribunal was challenged before the Hon'ble Supreme Court and the Hon'ble Aex Court vide its order dated 05.05.2015 in the matter of Secure Meters Ltd. vs Commissioner of Customs, New Delhi reported in 2015 (319) ELT 565 (SC) has reversed the order of the Tribunal and allowed the appeal filed by the Appellant therein and held that LCDs imported by the said Appellant were classifiable under chapter heading 9013.80 as liquid crystal devices. He further submitted that this issue is no more res integra after the decision of the Hon'ble Apex Court in the Secure Meters Ltd. case. He also submitted that LCD is used to display various information according to its application. The LCD, driven by microcontroller, is used in the instrument clusters manufactured by the appellants, which in turn displays the Main Kilometer reading, Day Trip Reading & Clock. It is his further submission that as per Rule 1 of General Rules of Interpretation, classification shall be determined according to the terms of the heading of any relevant section or Chapter Note. It is evident that LCDs are specifically provided in Tariff Item 9013. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... on of principles of natural justice, in view of the decision in the case of Zinc Products Vs UOI, 1992 (57) ELT 222 (mad). We also find that LCDs are specifically provided in Tariff Item No. 9013 and as per Note 2(a) attached to Chapter 90, parts and accessories which are goods included in any of the Heading of the said Chapter 90 are to be classified in their respective Headings. Here we may also take note of the Chapter Headings: Rate of Duty 9013 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 80 10 --- Liquid crystal devices (LCD) Free 9013 80 90 ---Other 7.5% 9013 90 -Parts and accessories 9013 90 10 --- for liquid crystal devices (LCD) Free 9029 Revolution, counters, production counters, taximeters, mileometers, pedometers and the like; speed indicators and tachometers, other than those of heading 9014 or 9015; stroboscopes 90299000 ---parts and accessories 7.5% 5.1. We also note that appellants have been earlier importing the said items and the appellants ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... other letters and symbols, more than seven bars are required. In the LED (Light-Emitting Diode), the bars are made of a substance that permits an electric current to flow through in one direction only. A substance used in this way is called a diode. As the current flows, the diode gives off red, blue, yellow, or other coloured light, depending on the compound of which it is made. For example, Gallium Phosphide (GaP) emits a green glow. Electric circuits in the instrument selectively turn on the current to the bars to form the various numbers and letters. In the LCD (Liquid Crystal Display), the bars are made of liquid crystals. These are a kind of hybrid material, not quite a liquid and not quite a solid. They can't be poured readily, as with liquids, nor are their molecules locked in place, as with true solids. But the molecules can be rotated slightly by an electric current. When no current flows, the bars are not noticeable, because they reflect light to the same extent as the rest of the display surface. But when a current flows through a bar, its molecules rotate and its ability to reflect light is reduced. That bar appears darker than the area around it and forms part ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Chapter 90. We may mention here that after studying the Chapter Notes, Note 2 whereof is reproduced above, there are certain guidelines provided under the caption "General'. Part-I thereof deals with General Content and Arrangement of the Chapter; Part-II deals with Incomplete or Unfinished Machines, Apparatus, etc.; and Part-III deals with Parts and Accessories. We fire reproducing here this portion in order to show how it supports the view which we have proposed to take as indicated above : "(III) Parts and Accessories Subject to Chapter Note 1, parts or accessories identifiable as suitable for use solely or principally with the machines, appliances, instruments or apparatus of this Chapter are classified with those machines, appliances, etc. This general rule does not, however, apply to : (1) Parts or accessories which in themselves constitute articles falling in any particular heading of this Chapter or of Chapters 84, 85 or 91 (other than the residual Headings 84, 85, 85.48 heading 84.14; transformers, electromagnets, capacitors, resistors, relays, lamps or valves, etc., remain classified in Chapter 85; the optical elements of Heading 90.01 or 90.02 remain in the head ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 90.12 but also in other headings of this Chapter (in particular, Headings 90.15, 90.18 or 90.27). This heading includes : (1) Liquid crystal devices consisting of a liquid crystal layer sandwiched between two sheets or plates of glass or plastics, whether or not fitted with electrical connections, presented in the piece or cut to special shapes and not constituting articles described more specifically in other headings of the Nomenclature. xx xx xx xx" As per this, LCD would be covered by "other devices' mentioned in 9013.80. That is precisely the case of the appellant. 21. The upshot of the aforesaid discussion leads to the conclusion that the view taken by the Tribunal in the impugned judgment is unsustainable in law. We, thus, allow the appeal, set aside the orders of the authorities below and hold that LCDs imported by the appellant were classifiable under Chapter Heading 9013.80." ..... X X X X Extracts X X X X X X X X Extracts X X X X
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