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TMI Blog2023 (9) TMI 826X X X X Extracts X X X X X X X X Extracts X X X X ..... [ 2015 (5) TMI 241 - SUPREME COURT] , qualification of the substituted classification to be at par with claimed classification, and amenable to choice by recourse to rule 3(3) of General Rules for Interpretation of the Tariff is questionable. There are too many gaps, despite the abundance of material in the order of lower authorities, that has grown beyond the brief proposal in the show cause notice to enable determination at the second appellate level that the impugned goods would be covered by description corresponding to a particular heading, sub-heading and tariff item. The importer proposed one in accordance with their lights and to their benefit. The adjudicating authority who is expected to independently justify the proposed heading has not adhered to that responsibility. That requires rectification. The show cause notice restored before the original authority to render a fresh decision that would be in conformity with the decisions of the Hon ble Supreme Court on the adversarial engagement in classification disputes and on the distinction, if any, between LCD and monitor to justify the appropriateness of the proposed classification. Appeal is, thus, allowed by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he approach of customs authorities. It was also contented that, in Secure Meters Ltd v. Commissioner of Customs, New Delhi [2015 (319) ELT 565 (SC)], the classification of LCD in heading 9013 of First Schedule to Customs Tariff Act, 1975 had attained finality and, even if the declared classification was not the most apt, the substituting classification would have to be discarded on that very ground. 3. According to Learned Authorized Representative, the appellant sought the most promising classification without considering the true nature of the goods as excluded from parts corresponding to tariff item 8473 50 00 of First Schedule to Customs Tariff Act, 1975 or that a specific heading existed within heading 8528 of First Schedule to Customs Tariff Act, 1975. It was argued that a cogent finding on the rejection of the classification claimed, as well as their motive, apparent from their changing stands during the proceedings, must lead to acceptance of classification that was found appropriate by customs authorities. 4. The dispute is all about placement of the imported goods at the tariff item level with both sides claiming their respective classifications to be more a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion of policy expressing tariff item 8473 50 00 of First Schedule to Customs Tariff Act, 1975 in terms of equal deployment is cause of a rigid approach to intent is, for the nonce, placed on the backburner. Even if that description corresponding to tariff item 8528 59 00 of First Schedule to Customs Tariff Act, 1975 may be animadverted for ambivalence, it cannot be gainsaid that the heading to which the customs authorities have inclined is also not free of ambivalence. Moreover, that monitors of a kind solely or principally used in an automatic data processing machines exists along with the description corresponding to sub-heading 8473 30 of First Schedule to Customs Tariff Act, 1975 should exclude monitors from parts and accessories. Yet, the heading itself disaggregates television reception apparatus and apparatus for such reception but without display as well as monitors and projectors but in the context of the latter segregates monitors to be used with automatic data processing machines from other monitors both, however, replete with technical specifications that should be the deciding factor. 7. Given such complexity, the show cause notice proposing that 2. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... swamp. The original authority, in holding that 10. It has to be examined first that exactly what is the imported goods. Importer has claimed that department has changed the nomenclature of the goods from what they have declared LCD Display to LCD Monitor. So the question arises what is a monitor. The monitors in essence are the goods which are capable of accepting signals and displaying/reproducing the same on the screen. HSN explanatory notes to 85.28 explains the goods covered under this chapter as under- This heading includes: (1) Monitors and projectors ,not incorporating television reception apparatus. (2) Television reception apparatus ,whether or not incorporating radio-broadcast receivers or sound or recording or reproducing apparatus, for the display of signals (television sets). (3) Apparatus for the reception of television signals, without display capabilities (e.g receivers of satellite television broadcasts) It further explains- monitors,projectors and television sets utilize different technologies ,such as CRT (Cathode ray tube), LCD (Liquid crystal display ), DMD (digital micro-mirror device), OLED (Organic light emitting diod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and not under heading for parts. In case of SWETHA Engineering Ltd .Vs Commissioner of C. Ex., Chennai in Final Order No. 319/2008, dated 4-4-2008 in Appeal No.:E/l21/2001/MAS decided in Structures, steel structures - Parts thereof - Items viz. plates, racks, angles etc. for structural support holding the boiler - Classifiable under sub-heading 730890 of Central Excise Tariff as parts of steel structural and not under sub-heading 840290 ibid as parts of boiler. [paras 3, 4] In another case Colletor of Customs Vs Moto Industries Co. Ltd., in respect of 'Measuring Head and Retraction Unit'. The department seeks to classify it as 'Machine Device under Heading 90.28 (4) read with Heading 90.16(1). The respondents want the assessment under Heading 84.45/48 as part of machine tools. It was urged that this is merely a machine tool. But as rightly urged by the department, the function of the imported article is to serve as a 'Measuring Device'. The main equipment is the 'grinding machine' and the 'measuring head' is designed for fitment in the machine. The function is to measure continuously during the process of grinding. I do not agree tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ied in their respective headings. It is observed that LCD Panels have vide range of applications as could be seen from the following article on Wikipedia (http://en.wikipedia.org/wiki/Liquid_crystal_display) Liquid crystal display from Wikipedia, she free encyclopedia A liquid crystal display (LCD) is a flat panel display, electronic visual display, or video display that uses the light modulating properties of liquid crystals (LCs). LCs do not emit light directly. LCDs are used in a wide range of applications, including computer monitors, television, instrument panels, aircraft cockpit displays, signage, etc. They are common in consumer devices such as video players, gaming devices, clocks, watches, calculators, and telephones. LCDs have replaced cathode ray tube (CRT) displays in most applications Heading 8428 covers the following items: 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 - Cathode-ray tube monitors: 8528 41 00 -- Of a kind solely or principally used in an a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. 852851. All other LCD panels whether or not specially designed for any particular machine have to be classified in Sub Heading No. 852859 in view of the (B) above. 6. The appellant has argued that the impugned goods have to be classified as per Section Notes 2(b). In this regard it is observed that Section Notes 2 (a) of section XVI is directly applicable in the present case as the impugned items are goods included in heading 85.28 therefore are classifiable in their respective heading in all cases as provided in Section Note 2(a). The Question of classifying the same on the basis of their sole or principal use as per the provision Note 2 (b) does not arise in the present case as the said Note 2(b0 applies to other parts i.e. parts which are not goods included in any Heading of Chapter 84 or 85. As the Section Note 2(a) of Section XVI categorically provides that the goods included in any Heading of Chapter 84 or 85 (other than the specified Headings) have to be classified in all cases in respective Headings, question of excluding LCD Monitors designed for ATM or similar machines from the provision of the above Note 2 (a) does not arise. Hon'ble Tribunal has in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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