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TMI Blog2021 (11) TMI 958X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The issue is squarely covered by the said decision of Hon ble Apex Court in M/S. SECURE METERS LTD. VERSUS COMMISSIONER OF CUSTOMS, NEW DELHI [ 2015 (5) TMI 241 - SUPREME COURT] , and the goods imported would be correctly classifiable under heading 90138010 as claimed by the Appellants. Appeal allowed - decided in favor of appellant. - Customs Appeal No. 85003 of 2019 - A/87132/2021 - Dated:- 9-11-2021 - HON BLE MR. SANJIV SRIVASTAVA, MEMBER (TECHNICAL) AND HON BLE MR. AJAY SHARMA, MEMBER (JUDICIAL) Shri T. Viswanathan, Advocate, for the Appellant Shri R.K. Dwivedy, Additional Commissioner, Authorised Representative for the Respondent ORDER PER: SANJIV SRIVASTAVA This appeal is directed against order in appeal No MUM-CUSTM- AMP-APP-654/18-19 dated 26.10.2018 of the Commissioner of Customs (Appeals) Mumbai III. By the impugned order, the Commissioner (Appeals) has upheld order in original No. DC/SY/368/2016-17VB/ACC dated 20.09.2016 of Deputy Commissioner of Customs, Gr. VB, ACC, Sahar, Mumbai:- D. ORDER a) I reject the classification of goods described as Liquid Crystal Device by importer under Customs Tariff Heading No ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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. The HSN explanatory notes to Heading 90.13 ( Page XVIII-9013-1) provides as under: This heading includes 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. The imported LCDs are therefore correctly classifiable under the Heading 90.13 as Heading 90.13 specifically covered Liquid Crystal devices, following the principle specific heading prevails over general Heading the imported goods be classified in this heading Heading 8522 of the Customs Tariff is only a general heading which covers all parts in general. The Section Note 1(m) to Section XVI specifically excludes Article of Chapter 90. It is an admitted position by the department also that the product in quest ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed more specifically in other headings, become out of scope of covering under CTH 9013 8010. In the Literature the subject goods specifically described as 'LCD Module'. The decisions relied upon by the counsel for the appellant are distinguishable and have been distinguished by the lower authorities. 4.1 We have considered the impugned order along with the submissions made in appeal and during the course of arguments. 4.2 Distinguishing the decision of Hon ble Apex Court in the case of Secure Meters and for determining the classification as part Car Audio/ Video Players under CTH 85229000, Deputy Commissioner has observed as under: I find that the above judgment is not applicable in the present case as the item under import is a liquid crystal display attached with inseparable PCB and the same is utilized for manufacturing of car audio assembly. Thus, I find it is a part for use in goods falling under Customs Tariff Heading 8519 or 8521 whereas the above judgment relates to goods falling under the same Customs Tariff Heading i.e. Chapter 90 which is not the case in respect of the instant imports. Also, I find that goods are not simply Liquid Crystal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dings, (b) Other parts, is 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 principally with the goods of headings 8517 and 8525 10 8528 are to be classified in heading 85/7; (c) All other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522. $529 or 8538 as appropriate or, failing that, in heading 8487 or 8548. On the other hand under Chapter 90, classification of parts is governed by Chapter note 2 which prescribes that parts and accessories for machines, apparatus, instrument or articles of this chapter are to be classified according to the following rules: (a) Parts and accessories which are goods included in any of the headings of this chapter or of chapter 84, 85, or 91 other than Heading 8487, 8548, or 9033) are in all cases to be classified in their respective headings; (b) Other parts and accessories, if suitable for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ch other and together contribute the principle function of sound reproduction. Therefore the 'LCD panel' being an essential part of music / audio system'; such LCD are classifiable under CTH 852290 as an essential component / part of whole (complete) music system or apparatus in terms of Notes 3 and 4 to Section XVI. Further since LCD panels are intended to work in conjunction with the main equipment or intended to contribute together to a clearly defined function (principal function) then the whole machine / equipment shall be classified in the heading appropriate to that function. Here the principal function of the equipment is to reproduce the sounds/music which is classifiable under heading 8519 and all its parts have specifically been covered under heading 8522 which covers parts and accessories suitable for use solely or principally with the heading of 8519 . Accordingly the parts of equipment of Chapter 8519 are to be classified by virtue of Chapter notes 2, 3 and 4 of Section XVI which merits classification under 8522 and not by Chapter notes of Chapter 90. 4.4 From the records it is evident apart from the submission made by the importer vide his letter d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present case. By holding that LCDs suitable for use solely or principally with energy meters are more specifically covered under CTH 9013, the Supreme Court has, in effect, declared that CTH 9013 covers LCDs (for energy meters) more specifically than CTH 9028 90 10 which covers parts and accessories of energy meters. It clearly follows from the said Supreme Court judgment 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 (9013 80 10) exclusively therefor. 4.5 The entire issue has been considered by the Hon ble Apex Court in case of Secure Meters referred earlier. Hon ble Apex Court has held as follows: 14. In Bloomsbury Dictionary of Science for Everyone , LCD and LED (Light Emitting Diode) are described in the following manner : LCD AND LED The two principal methods of forming numbers and letters on instruments such as calculators and digital watches. A basic pattern of seven bars is used to form the digits 0 to 9 and several letters. To form other letters and symbols, more than seven bars ar ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nterpreting Notes 2(a) and 2(b) of Chapter Heading 85, which is virtually to the same effect, that Note 2(b) would apply only if the items in question were not specifically classifiable under their respective headings. Para 4 of the said judgment, to this effect, reads as under : 4. It is clear from a reading of the two clauses to the section note that clause (b) would only apply once it was found that the items in question were not specifically classifiable under their respective headings. As has been clearly said by the Collector (Appeals) from the sequence of the paragraphs given under Section Note 2 it is clear that the question of switching over to Section Note 2(b) can arise only after ensuring that the parts are not covered by Section Note 2(b) [sic Section 3 Note 2(a)] which begins with the expression other parts meaning thereby that the parts which are not covered by Section Note 2(a) would be considered for coverage by Section Note 2(b). One cannot therefore, directly jump over to Section Note 2(b) without exhausting the possibility of Section Note 2(a). 18. The aforesaid view of ours gets strengthened from Part-III of Chapter Notes to Chapter 90. W ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f this Chapter, the general rule will not apply and said article would fall in that particular heading. To demonstrate this, examples which are given, eminently fit into the case at hand. 20. The aforesaid view of ours gets further cemented on going through Explanatory Notes issued by the World Customs Organization. Volume 4 of the Second Edition (1996), which covers Chapters 85-97, contains explanatory note in respect of item mentioned at 90.13, with which we are directly concerned herein. Relevant portion thereof 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. ..... X X X X Extracts X X X X X X X X Extracts X X X X
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