AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2021 (1) TMI 623
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....t 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 the case of M/s. Videocon Indus. Ltd. v. Commr. of C.Ex. & Cus., A....
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....ry 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 the various reasons stated supra, classification of the impugned goods under CTH 9013 is in accordance with the principles of classification; * Similarly, the impugned ....
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....rom 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 Chapter 90 and for this reason also the classification adopted by the appellant is erroneous. 4.4 It is also urged by the Learned A.R. that the appellant was continuously classifying these products under CTH 8529 and only after a....
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....o 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 image and sound recorders and reproducers, and parts and accessories of such articles". "Notes 1. This section does not cover: (a) ... (b) ... (c) ... (d) ... (e) ... (f) ... (g) ... (h) ... (i) ... (j) ... (k) ... (l) ... (m) Articles of Chapter 90; (n) ... (o) .......
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....; 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. (supra). 11.1 The very same issue came up for consideration before the Tribunal in the case of M/s. Samsung India Electronics P. Ltd. v. Commissioner of Customs, Noida reported in 2015 (326) E.L.T. 161 (Tri. - Del.). The competing classification with regard to Liquid Crystal Devices (LCDs) imported was CTH 9013 8010 as against CTH 8529 9090. The Department was of the view that the goods will fall under CTH 8529 by relying on Section Note 2(b) of Section XVI of the Customs Tariff Schedule. The Tribunal held that the goods would fall under CTH 9013 8010 and relied upon the decision of the Hon'ble Apex....
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....ment 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 principally with the machines, appliances, etc., they are to be classified with those machines/appliances. However, what is important is that immediately thereafter it is clarified that this general rule would not apply in certain circumstances. Sub-para of the above takes things beyond the pale of any doubt by making it crystal clear that those parts and accessories which in themselves constitute "article" falling in any particular heading of 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...." 11.2 This deci....