TaxTMI 
TaxTMI 
2021 (1) TMI 623
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....mmarized as under : (i) The appellant has been importing LCD panels for the period prior to February 2018. Subsequently, the appellant started manufacturing LCD panels also at their factory and accordingly imported parts of LCD panels for manufacture of LCD panels, which are ultimately used in the manufacture of television sets. (ii) Under the Customs Tariff, Chapter Heading 8528 covers television reception apparatus (also known as TV sets) and Chapter Heading 8529 covers parts which are suitable for use solely or principally with the said TV sets. On the other hand, Chapter Heading 9013, inter alia, specifically covers Liquid Crystal Devices (LCDs). While Tariff Item 9013 8010 covers LCDs, Tariff Item 9013 9010 covers parts of LCDs. (iii) The issue of classification of the LCD panels imported by the manufacturers of television sets was subject matter of dispute in the past. While various importers were seeking assessment under CTH 9013, which is applicable to LCD devices, the Department was insisting on classification under CTH 8529, which covers parts of television sets. Though the Tribunal upheld the classification under CTH 9013 in t....
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....covered elsewhere in the Tariff. Therefore, it is submitted that CTH 9013 8010 covering LCD is more specific than the residuary entry CTH 8529; • Moreover, what is sought to be covered under CTH 9013 is all kinds of Liquid Crystal Devices. The use of the term "devices" signifies that a broader area of goods is sought to be covered under CTH 9013 and consequently, Liquid Crystal Devices will include other items, apart from LCD panels; • Further, articles of Chapter 90 are specifically excluded from Section XVI of Customs Tariff (which covers Chapters 84 and 85) vide Section Note 1(m) to Section XVI; • The impugned goods cannot be classified under CTH 8529 by application of Note 2 to Section XVI because Section Note 2 starts with a rider that the said Note 2 will apply subject to Section Note 1 which, under 1(m), had already excluded articles of Chapter 90 from Section XVI, i.e., Chapters 84 and 85; • The fact that the impugned goods are solely or principally used with TV sets is not relevant for the purpose of classification and classification is done only as per the Section/Chapter Notes and the General Interpretative Rules. For t....
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....lassifiable under CTH 8528 7218 and CTH 8528 7310, the classification adopted by the appellant is wrong and they are to be correctly classified under CTH 8529 9090. 4.2 That it can be seen that the subject goods are excluded from CTH 9013 by using the phrase "not constituting articles provided for more specifically in other headings". Thus, parts of LCD panels also can be classified only under CTH 8529. As per Sl. No. 516 of Notification No. 50/2017-Cus. dated 30.06.2017, the goods for use in the manufacture of LCD and LED television panels are classified under CTH 8529. That both the items viz. LCD panels as well as parts of LCD panels would fall under CTH 8529 9090. 4.3 With regard to the decisions relied upon by the Learned Counsel for the appellant, he submitted that the Revenue has preferred appeal against such decisions before the Hon'ble Supreme Court and the same are still pending. Further, the decision of the Hon'ble Apex Court in M/s. Secure Meters Ltd. (supra) will be applicable only in case the final product is classifiable under Chapter 90. In the present case, the final product, namely, LCD and LED televisions are not classifiable under....
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....lsewhere 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 10 10 -Telescopic sights for fitting to arms 9013 10 20 -Periscopes 9013 10 90 -Other 9013 20 00 -Lasers, other than laser diodes 9013 80 -Other devices, appliances and instruments 9013 80 10 -Liquid Crystal Devices (LCD) 9013 80 90 -Other 9013 90 -Parts and accessories 9013 90 10 -For Liquid Crystal Devices (LCD) 9013 90 90 -Other (Emphasis applied) 8.3.1 The appellant has relied upon Section Note 1(m) of Section XVI to argue that the impugned goods will not fall under Chapter 84 and 85. Section XVI deals with "machinery and mechanical appliances; electrical equipment; parts thereof; sound recorders and reproducers; television ima....
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....udes: (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." 10.1 The authorities below have placed reliance on Note 2(a) of Section XVI to hold that parts of LCD panels would fall under CTH 8529 only. Section Note 2(a) reads as under: "Notes . . . 2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: (a) Parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings;" 10.2 This point has been very well addressed by the Tribunal in the case of M/s. Samsung India Electronics P. Ltd. (sup....
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.... be classified in their respective headings. Going by the plain reading of Note 2(a) it is clear that LCDs, which are goods and are used as parts in the final product mentioned in Chapter 90, namely, electricity supply meters, are to be classified in its respective heading. Respective heading, which is specifically provided, is 9013. 16. It was sought to be argued by Ms. Kiran Suri that as per Note 2(b), when these LCDs are used solely for particular instrument, namely, electricity supply meter, it has to be classified with the said meter and, therefore, Chapter Entry 9028 would get attracted. However, this argument loses sight of the fact that Note 2(b) relates to "other parts and accessories", namely, it would apply to those parts and accessories for which Note 2(a) is inapplicable. Once we find that in the present case Note 2(a) squarely applies, the irresistible conclusion is that the goods will be classified in Tariff Item 9013, which is the specific heading for these goods. ................. 19. This contains a general explanation to Chapter Note 2 and mentions that where parts or accessories identifiable as suitable for use solely or principa....