Imported LCDs classified under Chapter Heading 9013.80 for customs duty. Precedence of specific descriptions in tariff headings.

M/s. Secure Meters Ltd. Versus Commissioner of Customs, New Delhi

M/s. Secure Meters Ltd. Versus Commissioner of Customs, New Delhi - 2015 (319) E.L.T. 565 (SC) Issues Involved:
1. Classification of Liquid Crystal Displays (LCDs) for customs duty purposes.
2. Application of Chapter Notes and General Rules for Interpretation.
3. Determination of specific versus general tariff headings.
4. Applicability of Note 2(a) and Note 2(b) of Chapter 90.
5. Relevance of Explanatory Notes by World Customs Organization.

Issue-wise Detailed Analysis:

1. Classification of Liquid Crystal Displays (LCDs) for customs duty purposes:
The primary issue in this case is whether the imported LCDs should be classified under Chapter Heading 9013.80, attracting a Nil rate of basic customs duty, or under Heading 9028.90 as parts of electricity meters. The appellant claimed that LCDs should be classified under Heading 9013.80 based on Notification No. 16/2000, while the respondent argued that they should be classified under Heading 9028.90 as they were part of energy meters.

2. Application of Chapter Notes and General Rules for Interpretation:
The Deputy Commissioner, Customs, classified the LCDs under Chapter Heading 9028.90 by applying Rule 3(c) of the General Rules for Interpretation, which states that goods should be classified under the heading that occurs last in numerical order among those which equally merit consideration. The appellant argued that Note 2(a) of Chapter 90 should apply, which requires parts and accessories included in any headings of Chapter 90 to be classified in their respective headings.

3. Determination of specific versus general tariff headings:
The court examined whether the specific description of LCDs under Heading 9013.80 should prevail over their use as parts of electricity meters under Heading 9028.90. The appellant contended that a specific description should take precedence over a general description, as per Rule 3(a) of the General Rules for Interpretation.

4. Applicability of Note 2(a) and Note 2(b) of Chapter 90:
The court considered Note 2(a) and Note 2(b) of Chapter 90. Note 2(a) states that parts and accessories included in any headings of Chapter 90 should be classified in their respective headings. Note 2(b) applies to parts and accessories suitable for use solely or principally with a particular kind of machine. The court concluded that Note 2(a) was applicable since LCDs are specifically mentioned in Heading 9013.80.

5. Relevance of Explanatory Notes by World Customs Organization:
The court referred to the Explanatory Notes issued by the World Customs Organization, which clarified that LCDs not constituting articles provided for more specifically in other headings should be classified under Heading 9013.80. The court found this to support the appellant's case.

Conclusion:
The court allowed the appeal, set aside the orders of the authorities below, and held that the LCDs imported by the appellant were classifiable under Chapter Heading 9013.80. The court emphasized that specific descriptions in tariff headings should take precedence and that Note 2(a) of Chapter 90 was applicable, leading to the classification of LCDs under Heading 9013.80.