AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1012
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....from China classifying them under HSN 85312000 covered under Bill of Entry No. 6109126 dated 14.10.2024. As per copy of BE, it is seen that the subject BE was assessed to by Group officers and upon payment of duty, the consignment was examined and there after OOC was given. 2.2 The applicant submitted that the impugned cargo is a new product manufactured in China and they have imported it for the first time. The subject goods are used for commercial purposes such as advertising etc. The product has been well acknowledged by their end-users and there is considerable demand in the market. Hence, they intend to undertake regular import of the impugned goods in commercial quantity. They submitted that there is cut-throat competition in trading and therefore, they wanted to make correct declaration of CTH and correct incidence of duty of the goods in import documents to thwart any eventuality of any litigation in future. 3. Applicants Interpretation of Law/Facts: 3.1 The applicant submitted that the further, there are essential accessories to the LED Film which forms the integral part of the import without which the impugned goods cannot be used. Details of Accessories are as u....
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....h the numbers are indicated by a hand moving round a dial. (3) Office indicators, for example, those used to indicate whether the occupant of a particular office is free or not. Some types are merely a simple "come in" or "engaged" sign illuminated at will by the occupant of the office. (4) Lift indicators. These indicate, on an illuminated board, where the lift is and whether it is going up or down. (5) Engine room telegraph apparatus for ships. (6) Station indicating panels for showing the times and platforms of trains. (7) Indicators for race courses, football stadiums, bowling alleys, etc. Certain of these indicator panels, etc., also incorporate bells or other sound signalling services. The heading does not cover public maps of roads or railways in which a particular place, road, section or route is illuminated on pressing an appropriate button, nor electric advertising signs. PARTS Subject to the general provisions regarding the classification of parts (see the General Explanatory Note to Section XVJ), parts of the goods of this heading are also classified here. 3.3.1 The applicant submitted that in....
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.... makers 8516.72 -- Toasters 8516.79 -- Other 8516.80 - Electric heating resistors 8516.90 - Parts The applicant submitted that however, suggested CTH for Power Cord is 8544. Relevant excerpts from Explanatory Notes are appended herewith; 85.44 - Insulated (including enamelled or anodised) wire, cable (including co-axial cable) and other insulated electric conductors, whether or not fitted with connectors; optical fibre cables, made up of individually sheathed fibres, whether or not assembled with electric conductors or fitted with connectors. - Winding wire : 8544.11 -- Of copper 8544.19 -- Other 8544.20 - Co-axial cable and other co-axial electric conductors 8544.30 -Ignition wiring sets and other wiring sets of a kind used in vehicles, aircraft or ships - Other electric conductors, for a voltage not exceeding 1,000 V : 8544.42 - - Fitted with connectors 8544.49 - - Other 8544.60 ~- Other electric conductors, for a voltage exceeding 1,000 V 8544.70 - Optical fibre cables Provided they are insulated, this heading covers electric wire, cable and other conductors (e.g.,braids, strip, bars....
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....ystem. However, components consisting of several electric circuit elements and having multiple electrical functions, such as integrated circuits, are not considered as discrete components. Electronic integrated circuits include memories (e.g., DRAMS, SRAMs, PROMS, EPROMS, EEPROMS (or EPROMS)), microcontrollers, control circuits, logic circuits, gate arrays, 3.7 The applicant submitted that for classification of Power Supply, Explanatory Notes are the most important guiding literature and therefore, the same are as under: 85.04 - Electrical transformers, static converters (for example, rectifiers) and inductors. 8504.10 - Ballasts for discharge lamps or tubes - Liquid dielectric transformers: 8504.21 -- Having a power handling capacity not exceeding 650 kVA 8504.22 -- Having aa power handling capacity exceeding 650 kVA but not exceeding 10,000 kVA 8504.23 - - Having a power handling capacity exceeding 10,000 kVA ~ Other transformers: 8504.31 - - Having a power handling capacity not exceeding 1 kVA 8504.32 - - Having a power handling capacity exceeding 1 kVA but not exceeding 8504.33 -- hav....
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.... Nhava Sheva, Tal: Uran Distt: Raigad, Maharashtra-400707 and at the jurisdiction of office of the Principal Commissioner/Commissioner of Customs (Imports), Air Cargo Complex, Sahar, Andheri (East), Mumbai 400099. In terms of Provisions of the Section 28-I(1) of the Customs Act, 1962 read with the Sub-regulation No. (7) of the Regulation No. 8 of the Customs Authority for Advance Rulings Regulations, 2021, the application was forwarded to the office of the Principal Commissioner/Commissioner of Customs (Imports), Air Cargo Complex, Sahar, Andheri (East), Mumbai 400099 on 26.03.2025 as indicated by the applicant at Sr. No. 13 of their CAAR-1 Forms calling upon them to furnish the relevant records with comments, if any, in respect of the said application. Further reminders were also sent on 28.04.2025, 14.05.2025 and 09.06.2025 to the concerned jurisdictional commissionerates. Further, in terms of Provisions of the Section 28-I(1) of the Customs Act, 1962 read with the Sub-regulation No. (7) of the Regulation No. 8 of the Customs Authority for Advance Rulings Regulations, 2021, the application was forwarded to the office of the Principal Commissioner of Customs, NS-V, JNCH, Nhava She....
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....t circuit boards with LEDs mounted (e.g., used in further manufacture), then: CTH 8541.41.00 "Light-emitting diodes (LEDs)" If they are part of a display or signage, with control units and visible indicators, then: CTH 8531.80.00 "Other indicator panels incorporating LEDs". It was submitted that for the product described as "LED strips" in M/s SBH Impex's application, if these are complete lighting modules for general-purpose or decorative illumination, the appropriate classification would be under CTH 9405. 5. Records of Personal Hearing 5.1 A personal hearing was held on 18.06.2025 at 02:30 PM in the office of the CAAR, Mumbai. Shri Shubendu Patnaik and other representative appeared for the personal hearing on behalf of the applicant vide Online Mode. They Submitted that the subject import good is LED film with requisite accessories. No one appeared for the hearing from the departments side. 5.2 An another personal hearing was held on 20.06.2025 at 11:30 AM in the office of the CAAR, Mumbai. Shri Yatin A. Modak, Business Head of SBH Impex and Shri K. V. P. Singh, Consultant appeared for the personal hearing on behalf of the applicant in physical mode. They s....
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....d adjustable brightness for optimal viewing. iv. Control Box in Transparent LED Display Film: The Control Box in a Transparent LED Display Film plays a crucial role in managing the operation of the display. It is responsible for power distribution, signal processing, brightness control, and content playback to ensure smooth and high-quality visuals. V. Functionality of the Control Box: The control box serves as the central processing unit (CPU) for the transparent LED display, managing power, signal processing, brightness control, and connectivity. It provides DC voltage, ensuring vi. Stable power distribution: It processes input from media players, computers, or cloud systems, using synchronous and asynchronous control for real time updates or scheduled content. 6.2 The applicant further submitted that CTH 8524 of Customs Tariff describes as under: 8524 FLAI PANEL DISPLAY MODULES, WHETHER OR NUI INCORPORATING TOUCH-SENSITIVE SCREENS - Without drivers or control circuits: -- Of liquid crystals 8524 11 10 For the goods of sub-heading 8471 ....
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....es and/or Personal computers and Monitors and Projectors. 6.3 The applicant submitted that CTH 9405 of Customs Tariff describes as under: 9405 LUMINAIRES AND LIGHTING FITTINGS INCLUDING SEARCHLIGHTS AND SPOTLIGHTS AND PARTS THEREOF, NOT ELSEWHERE SPECIFIED OR INCLUDED; ILLUMINATED SIGNS, ILLUMINATED NAME-PLATES AND THE LIKE, HAVING A PERMANENTLY FIXED LIGHT SOURCE, AND PARTS THEREOF NOT ELSEWHERE SPECIFIED OR INCLUDED - Chandeliers and other electric ceiling or wall lighting fittings, excluding those of a kind used for lighting public open spaces or thoroughfares: 9405 11 00 -- Designed for use solely with light-emitting diode (LED) light sources u 25% 9405 19 00 - Other u 25% - Electric table, desk, bedside or floor-standing luminaires: 9405 21 00 -- Designed for use solely with light-emitting diode (LED) light sources u 25% 9405 29 00 -- Other u 25% - Lighting strings of a kind used for Christmas trees: 9405 31 00 -- Designed for use solely with light-emitting diode (LED) light sources u 25% 9405 39 00 ....
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....090 13 Controller A35 85285900 8542 7.3 At the outset, I find that the issue raised at the Sr. No. 08 in the CAAR-1 form is squarely covered under Section 28H(2) of the Customs Act, 1962 being a matter related to the classification of goods I further find that the applicant is a holder of an Importer Exporter Code (IEC) and thereby, is a valid applicant under Section 28E (c) of the Customs Act, 1962 for filing application under Section 28H of the Customs Act, 1962. 7.4 The applicant has submitted that the subject goods listed at Sr. No. 1 to 6 of the table-I above described as LED are a Transparent LED display film which consists of a thin, flexible LED film integrated with a transparent circuit substrate and uses REE1313/1515/2121 Mini LEDs, which are ultra small yet powerful, providing high brightness while maintaining transparency. Further, it combines LED lighting and the driving circuit, thereby, reducing external wiring and improving efficiency. The applicant further submitted that once installed, it connects to a power and control system that allows seamless content playback and would be used for commercial purposes such as advertising etc. ....
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....as 5kg/m2; and are easy to install. It is further mentioned that no steel structure is required for these screens as the screen body with its own viscosity can be directly attached to a glass surface, with strong colloid adsorption, and the viscosity will also increase with the passage of time due to the inherent characteristics of the colloid. The supplier Website further mentions that it is a patented product where Self-developed chip puts the chip inside the LED beads, simplifying the circuit design and ensuring extremely high permeability; and it is made of flexible materials, therefore, it can be flexibly bent and curved with a minimum diameter of 6cm, adapting to various curved shapes, such as cylindrical, arc, etc., thereby giving greater flexibility in design and installation. Further, it is mentioned that the technology behind a thin flexible LED Screen (https://www.reefilm- led.com/news/92/) is based on micro-LEDs, which are miniature light-emitting diodes. These micro- LEDs are incredibly small, allowing for a high pixel density and superior image quality. The vibrant colors, sharp contrasts, and wide viewing angles offered by thin Flexible LED Screens make them a prefer....
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....vex displays, wrap around curved surfaces, or be molded to fit irregular shapes. This flexibility opens up new possibilities for creative and innovative display designs. Bendable LED screens have various applications, including advertising and signage, architectural lighting, stage productions, automotive displays, wearable technology, and more. Their ability to conform to curved or irregular surfaces makes them suitable for installations where traditional flat displays are impractical or limited in functionality. * Flexible Transparent LED screen, is a display technology that combines the properties of flexibility, transparency, and light-emitting diodes (LEDs) to create a unique visual experience. These screens are typically made using a matrix of micro-LEDs that are embedded in a transparent and flexible material, such as a polymer. The micro-LEDs emit light when an electric current is applied to them, creating colorful and vibrant visuals. The transparency of the screen allows viewers to see through it, enabling creative applications where the content on the screen can interact with the environment behind it. Flexible transparent LED screens offer several advantages an....
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....submissions, have stated that these films can be used to display product information, promotional information and advertising messages. Further, these films can display any and all information as desired by the user, it may be advertisements or information. These films are not limited to just indication of information, but are versatile in nature and are capable of displaying any video with the help of the controller. 7.10 Further, the applicant in his submissions at the time of hearing contended that the subject goods are imported in a set which also includes a control system of Nova / Colorlight, I find it pertinent to examine the functionalities provided by the control system. In the instant matter, the video signals to the flexible LED films are passed using a Nova or ColorLight control system which is part of the kit imported. The applicant has not submitted more detail about these controllers, but just have mentioned "A35" under the Column "Specification". A search through the open source revealed that "A35" might refer to "Colorlight A35 LED Cloud Player". From the information available on the website of the manufacturer of the Control System - Colorlight A35 LED Cloud Pl....
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....deo walls in function, just in a novel flexible form, therefore, I find that there are three potential headings for classification of the subject goods which are 8531 (Indicator Panels), 8524 (Flat Panel Display Modules), and 8528 (Monitors). The relevant Heading Text for all the three Headings are as under: Tariff Heading Heading Description 8524 Flat panel display modules, whether or not incorporating touch-sensitive screens. 8528 Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio- broadcast receivers or sound or video recording or reproducing apparatus. 8531 Electric sound or visual signalling apparatus (for example, bells, sirens, indicator panels, burglar or fire alarms), other than those of heading 8512 or 8530 7.14 I will first take Heading 8531 which covers electric sound or visual signalling apparatus such as burglar alarms, indicator panels, bells and sirens for examination. The primary function of an apparatus of Heading 8531 is to signal or alert (e.g., an alarm bell, a floor number indicator, a fire alarm). The subject goods, however, are designed t....
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....ng video signals and the allocation of those signals to pixels on the display. However, heading 85.24 does not include display modules which are equipped with components for converting video signals (e.g. a scaler IC, decoder IC or application processor) or have otherwise assumed the character of goods of other headings. For the classification of flat panel display module defined in this note, heading 85.24 shall take precedence over any other heading in the nomenclature. " 7.17 Chapter Note 7 of the Chapter 85 clearly describes that this heading covered only those display modules which would further be incorporated into articles of other heading prior to their use. In the instant matter, the subject goods i.e. flexible LED films are being imported as a complete set which is capable of being used directly and a finished product. Heading 8524, as revised in HS 2022, covers flat panel display modules (FPMs) such as LCD, OLED or MicroLED modules, provided they do not incorporate driver electronics or display control circuits. Such modules are intended for incorporation into finished monitors or other apparatus. The subject goods, however, incorporate self-developed chip-in....
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....ject goods also clear shows that the subject goods with the help of the controller can be connected to an ADP machine, however, their objective characteristic and principal use points more towards display of advertising / informational / promotional content. 7.20 By application of General Rule for the Interpretation of the Harmonized System (GRI) 1, classification must be determined according to the terms of the headings and relevant Section and Chapter Notes. Section XVI, Note 3 provides that composite machines are to be classified according to their principal function. Further, General Rule for the Interpretation of the Harmonized System (GRI) 2(a) dictates that an article presented unassembled or disassembled is to be classified as the finished article, provided it has the essential character of that finished article. In the instant matter, when imported together with essential accessories such as controllers, power supply units and LAN/power cables, the goods i.e. flexible LED films are to be treated as a set, whose essential character is imparted by the display function similar to that of a LED video walls / digital signage panel (dynamic advertising displays). Therefore, u....