LCDs reclassified to Chapter Heading 9013, not 8714. Appellant wins tariff classification dispute.

The tribunal ruled in favor of the appellant, determining that the Liquid Crystal Devices (LCDs) should be classified under Chapter Heading 9013 instead of 8714. The LCDs were found to meet the description under heading 9013 and were not solely or principally used with motorcycles. Additionally, the tribunal allowed the appellant's claim for the benefit of notification 24/2005 (Sr. No. 29), stating that the LCDs were specifically provided under tariff item 9013. The final order classified the LCDs under Chapter Heading 9013, granting them the benefit of the notification.

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Issues Involved:
1. Classification of Liquid Crystal Devices (LCDs) under the appropriate customs tariff heading.
2. Eligibility for the benefit of notification 24/2005 (Sr. No. 29).

Detailed Analysis:

1. Classification of Liquid Crystal Devices (LCDs) under the appropriate customs tariff heading:
The primary issue is whether the LCDs imported by the appellant should be classified under heading 9013 as "Liquid Crystal Devices" or under heading 8714 as "parts and accessories of vehicles."

Appellant's Argument:
The appellant argued that the imported LCDs should be classified under Chapter Heading 90138010, which pertains to "Liquid Crystal Devices" as per the Harmonized System of Nomenclature (HSN) explanatory notes. According to the appellant, the LCDs are without electrical connections, presented in pieces or cut to special shapes, and consist of a liquid crystal layer sandwiched between two sheets of plastic.

Department's Argument:
The department contended that the LCDs are complete devices used for motorcycles and should be classified under Chapter Heading 8714990 as "parts and accessories of vehicles."

Tribunal's Analysis:
The tribunal examined the HSN explanatory notes and found that the LCDs imported by the appellant met the description under heading 9013, which includes "Liquid Crystal Devices not constituting articles provided for more specifically in other headings." The tribunal noted that the LCDs could be used for various purposes such as computer monitors, television, instrument panels, video games, clocks, and watches, and thus, they are not solely or principally used with motorcycles.

The tribunal also referred to a Supreme Court decision in the case of Secure Meters Ltd. vs Commissioner of Customs, New Delhi, where it was held that LCDs should be classified under Chapter Heading 9013.80 and not under headings meant for parts and accessories of specific devices.

Conclusion:
The tribunal concluded that the LCDs imported by the appellant should be classified under Chapter Heading 9013 and not under 8714, as the LCDs do not fulfill the conditions specified for classification under heading 8714.

2. Eligibility for the benefit of notification 24/2005 (Sr. No. 29):
The appellant claimed the benefit of notification 24/2005 (Sr. No. 29) for the imported LCDs.

Department's Argument:
The department rejected the appellant's claim, arguing that the LCDs are complete devices used for motorcycles and do not qualify for the benefit under the said notification.

Tribunal's Analysis:
The tribunal found that the appellant had indeed produced the relevant documents, including drawings and designs, before the Adjudicating Authority, contrary to the observations made by the Commissioner (Appeals). The tribunal also noted that the LCDs imported by the appellant did not constitute articles provided more specifically in other headings and were specifically provided under tariff item 9013.

Conclusion:
The tribunal allowed the appeal filed by the appellant, concluding that the LCDs imported by the appellant are classifiable under Chapter Heading 9013 and are eligible for the benefit of notification 24/2005 (Sr. No. 29).

Final Order:
The appeal filed by the appellant is allowed, and the LCDs imported by the appellant are to be classified under Chapter Heading 9013, making them eligible for the benefit of notification 24/2005 (Sr. No. 29). The decision was pronounced in court on 11/01/2019.

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