TaxTMI 
TaxTMI 
2021 (11) TMI 958
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....ribed by the importer as "Liquid Crystal Devices" found with inseparable PCB" under Customs Tariff Heading 85229000." 2.1 Appellants filed B/E No. 6374102 dated 17.08.2016 for clearance of goods described as " Liquid Crystal Devices- TFT - LCD 4.8 IN " quantity declared is 3072 pieces and assessable value declared is Rs. 37,62,746/ - (USD-54988 CIF) on the basis of invoice no. 9211400 dated 06.08.2016. The importer classified the said goods under CTH 90138010 and claimed. BCD 'NIL' duty vide notification no. 24/2005 (Sr. No. 29). 2.2 The Shed Officer observed that in the invoice the description mentioned is" Liquid Crystal Display" whereas in the Bill of Entry the description mentioned is " Liquid Crystal Devices". The goods were examined and it was found that the imported goods are "Liquid Crystal Displays" attached with inseparable PCB making it part of some equipment. Importer vide letter dated 19.08.2016 stated that the said goods are required for manufacturing car audio assembly. 2.3 On the basis of the letter dated 19.08.2016, revenue was of the view that the imported goods being part of Car Audio/Video Players (classifiable at CTH 8519 or 8521) classifiable ....
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....Section XVI is subject to Section Note 1. Therefore, Articles of chapter 90 can never fall within the purview of Chapter 85 which fall within Section XVI; • It is settled law that the goods need to be classified as imported and not on the basis of end use. • The issue on classification in present case stands settled by the following decisions - • Secure Meters Ltd. [ 2015 (319) E.L.T. 565 (S.C.); • Samsung India Electronics Pvt. Ltd [2015 (326) E.L.T. 161 (Tri. - Del.)] • Samsung India Electronics Pvt. Ltd. [2016 (337) ELT 87 (Tri. - Chennai)] • Samsung India Electronics Pvt. Ltd. [2018 (360) ELT 1053 (Tri. - All)] • Videocon Industries Ltd. [2009 (2) TMI 814 - CESTAT Mumbai (1)] • Varroc Engineering P. Ltd. [2019 (366) ELT 170 (Tri. - Mumbai)] • Moser Baer India Ltd.[2017 (8) TMI 979] • Moser Baer India Ltd. [2018 (361) ELT 908 (Tri. - All)] • Genus Power Infrastructure Ltd[ 2016 (9) TMI 469 - CESTAT Mumbai] • The decision of Supreme Court in the case of G.S.Auto relied by the revenue is distinguishable and not applicable to pr....
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....apter 90 which is not the case in respect of the instant imports. Also, I find that goods are not simply Liquid Crystal Device alone but attached by connector with PCB, thus the said goods are not LCD but more than that and it became specific part of Car Audio System. I find that the invoice clearly mentions that the goods are Liquid Crystal Display and also the letter dated 29.08.2016 of the supplier also states that the item under import is attached with PCB which functions as voltage stabilizing filter for incoming power source from external device. Thus, it is clear that it is distinct part of the audio system and therefore the same is rightly classifiable under Customs Tariff Heading 85229000." 4.3 While upholding the order of Deputy Commissioner, Commissioner (Appeal) has observed as follows: "5. I have gone through the facts and submissions of the case. I find that the appellant is engaged in manufacture of car audio / infotainment system and had imported 'liquid crystal displays with inseparable PCBs which were to be used as parts of car audio assemblies. I find that it is the contention of the appellant that since the imported goods i.e. l....
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....n Heading 8487, 8548, or 9033) are in all cases to be classified in their respective headings; (b) Other parts and accessories, if suitable for use solely or principally with the particular kind of machine, instrument or apparatus, or with a number of machines, instruments or apparatus of the same heading (including a machine, instrument or apparatus, or heading 9010, 9013, or 9031) are to be classified with the machines, instruments or apparatus of that kind; (c) All other parts and accessories are to be classified in heading 9033. Going by the plain reading of above two criteria prescribing the manner as to how parts of equipment / apparatus of Chapter 85 vis-à-vis chapter 90 are to be classified, it is apparent that the criteria of chapter 90 will be applicable only in cases where the main equipment is also classifiable under chapter 90. All the contentions of the appellants and judgements referred covers the situation where the main equipment was classifiable under chapter 90 and by virtue of Note 2 to Chapter 90, the parts which themselves were goods i.e. LCDs were classified under Heading 9013. In the case at hand the goods are parts / access....
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....classification under 8522 and not by Chapter notes of Chapter 90." 4.4 From the records it is evident apart from the submission made by the importer vide his letter dated 19.08.2016, there is nothing available on record to show that the imported goods are solely meant for use as part of the car audio/ video assembly. Not even the literature relied upon states so. As per the submissions made by the revenue also the literature describes the imported goods as "LCD Module". In our view the term is wide enough and cannot be limited to mean the part of car audio/ video assembly. The observations made by the Deputy Commissioner for holding the classification under chapter 85 do not flow from any evidence or literature but is based on his opinion. Just because the PCB is attached to the LCD, will make the LCD a part solely for use in car audio/ video assembly, is the observation made. LCD is only the display device to display the parameters intended to be displayed. It can be used with hundred of devices for displaying the parameters. While distinguishing the decision of Secure Meters he admits multiple uses of LCD. The reason stated by the deputy commissioner for distinguishing the dec....
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....ents such as calculators and digital watches. A basic pattern of seven bars is used to form the digits 0 to 9 and several letters. To form other letters and symbols, more than seven bars are required. In the LED (Light-Emitting Diode), the bars are made of a substance that permits an electric current to flow through in one direction only. A substance used in this way is called a diode. As the current flows, the diode gives off red, blue, yellow, or other coloured light, depending on the compound of which it is made. For example, Gallium Phosphide (GaP) emits a green glow. Electric circuits in the instrument selectively turn on the current to the bars to form the various numbers and letters. In the LCD (Liquid Crystal Display), the bars are made of liquid crystals. These are a kind of hybrid material, not quite a liquid and not quite a solid. They can't be poured readily, as with liquids, nor are their molecules locked in place, as with true solids. But the molecules can be rotated slightly by an electric current. When no current flows, the bars are not noticeable, because they reflect light to the same extent as the rest of the display surface. But when a current ....
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....not therefore, directly jump over to Section Note 2(b) without exhausting the possibility of Section Note 2(a)." 18. The aforesaid view of ours gets strengthened from Part-III of Chapter Notes to Chapter 90. We may mention here that after studying the Chapter Notes, Note 2 whereof is reproduced above, there are certain guidelines provided under the caption 'General'. Part-I thereof deals with General Content and Arrangement of the Chapter; Part-II deals with Incomplete or Unfinished Machines, Apparatus, etc.; and Part-III deals with Parts and Accessories. We fire reproducing here this portion in order to show how it supports the view which we have proposed to take as indicated above : "(III) Parts and Accessories Subject to Chapter Note 1, parts or accessories identifiable as suitable for use solely or principally with the machines, appliances, instruments or apparatus of this Chapter are classified with those machines, appliances, etc. This general rule does not, however, apply to : (1) Parts or accessories which in themselves constitute articles falling in any particular heading of this Chapter or of Chapters 84, 85 or 91 (other than the residu....