TaxTMI 
TaxTMI 
2025 (2) TMI 1309
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....n dated 28.11.2024 has submitted as follows: 2.1 M/s. Samsung India Electronics Private Limited (hereinafter referred to as the Applicant"), is a Private Limited company engaged in the production and sales of finished products, including televisions, refrigerators, washers, air conditioners, smartphones, and components such as semiconductors and display panels. It serves customers throughout India. 2.2 The applicant is proposing to import "Photocouplers" (hereinafter referred to as "the Photocouplers / the subject goods"). The Applicant has already been importing goods. Composition of the Photocouplers 2.3 The Photocouplers in question is an electronic, semiconductor device that transfers electrical signals between two electrically isolated circuits. It is also known as Opto-Isolator, Optocoupler, or optical isolator. 2.4 It is used to protect sensitive circuits and enables designing of many hardware circuits of daily use. It avoids the need to replace components by protecting them. 2.5 There are various kinds of Photocouplers available, which are designed according to different needs and switching capabilities. 2.6 The Photocouplers in question is used in Air-....
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....hinery and Equipment and Parts thereof: Sound Recorders and Reproducers. Television Image and Sound Recorders and Reproducers and Parts and Accessories of Such Articles Electronics. 3.2 The chapter falls under Section XVI, titled "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". 3.3 The Photocoupler being a semi-conductor device, it is relevant to refer note 12 of the HSN explanatory notes to Chapter 85, which specifically provides for semi-conductor devices. 3.4 The note specifically provides as under: "For the classification of the articles defined in this note, headings 85.41 and 85.42 shall take precedence over any other heading in the nomenclature, except in case of heading 85.23, which might cover them by reference to, in particular, their function." 3.5 Further, in view of GIR 1, it is necessary to refer to the Notes to Section XVI, which are extracted below for ease of reference: 2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not b....
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....e device ancillary functions. 3.10 As semiconductor devices are specifically covered under CTH 8541, classification under CTH 8541 will be appropriate. 3.11 Under CTH 8541 the appropriate Tariff Item will be: * As the Photocouplers are not in the nature of photovoltaic cells classification under CTH 8541 4200 and CTH 85414300 can be ruled out. * As there is no other specific Tariff Item covering Photocouplers, classification under CTH: 85414900-Other will be appropriate. 3.12 It could be seen from the Explanatory Notes to CTH 8541 that Photovoltaic cells are defined in the HSN ENs as those that convert light directly into energy without any external source of current. 3.13 One special type of Photovoltaic cells is the solar cells, which are silicon photovoltaic cells which convert sunlight directly into electric energy. They are stated to be used in groups as sources of electric power. 3.14 The second special category of Photovoltaic cells are Photo-diodes, Phot-transistors and photo-thyristors. 3.15 Under the third special category of Photovoltaic cells will be covered Photocouplers and Photo relays. It is important to note that this category co....
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....84 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 83 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529 8538 und 8548) are in all cases to be classified in their respective headings, 3.22 The above decision has also been followed by the Hon'ble Supreme Court in Secure Meters Ltd. v. CC [2015 (319) ELT 565 (SC)]. The relevant portion of the decision is extracted below: "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 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. 17. In....
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....er contains two parts: a. LED that emits infra-red light. b. Photosensitive device that detects the light from the LED. Both the parts are contained within a black box with pins for connectivity. The input circuit takes the incoming signal, whether AC or DC, and uses the signal to turn on the LED. The Photosensor is the output circuit that detects the light from the LED and depending on the type, output circuit gives AC or DC. ⮚ Based on the functions elaborated above, it can be said that the Photocoupler carries out a specific function, that is signal control at the same time keeping voltage isolation in two different circuits. These devices allow digital signals to manage larger AC voltages. By providing a bridge between different voltage levels, Photocouplers enable precise control over high-power application without direct electrical contact. As such, based on its components and function, the item has a characteristic of a Photosensitive Semiconductor Device. ⮚ The HSN Notes to CTH 8541 also, cover the 'Photocoupler' as a Photosensitive Semiconductor Device. ⮚ Photosensitive Semiconductor Device has a specific ent....
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....riff Act, 1975, Chapter/ Section notes along with HSN explanatory notes. As per Rule 1 of GRI, the titles of Sections, Chapters and sub-Chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes. 6.3.1 The Applicant submitted that Photocouplers in question is an electronic, semiconductor device that transfers electrical signals between two electrically isolated circuits. It is also known as Opto-Isolator, Optocoupler, or optical isolator. It is used to protect sensitive circuits and enables designing of many hardware circuits of daily use. It avoids the need to replace components by protecting them. There are various kinds of Photocouplers available, which are designed according to different needs and switching capabilities. The Photocouplers in question is used in Air- conditioner's -Printed Circuit Board Assembly (AC- PBA). The Photocoupler contains two parts: 1. An LED that emits infrared light 2. A photosensitive device that detects the light from the LED Both the parts are contained within a black box with pins for con....
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....ncorporating a refrigerating unit and a valve for reversal of the cooling or heat cycle (reversible heat pumps) 8415 81 10 - Split air-conditioner two tonnes and above 8415 81 90 - Other 8415 82 -- Other, incorporating a refrigerant unit 8415 82 10 Split air-conditioner two tonnes and above 8415 82 90 - Other 8415 83 -- Not incorporating a refrigerating unit 8415 83 10 --- Split air-conditioner two tonnes and above 8415 83 90 --- Other 8415 90 00 - Parts 6.3.4 Moreover, as per the Explanatory Note to subheading 841590 of HSN, "Other parts for air- conditioning machines, whether or not designed for building into a self-contained unit, are to be classified in accordance with the provisions of Note (2)(a) to Section XVI or if Note 2 (a) is not applicable, in accordance with Note 2 (b) or 2 (c) to Section XVI, depending on whether or not they are identifiable as suitable for use solely or principally with the air-conditioning machines of which they are parts". 6.3.5 Note 2 to Section XVI reads as under. "2 .- Subject to Note 1 to this Section, Note 1 to Chapter 84 and Note 1 to Chapter 85, parts of machines (not being....
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....8541 under the category of 'B- Photosensitive Semiconductor Device' is extracted as below: "(B) PHOTOSENSITIVE SEMICONDUCTOR DEVICES This group comprises photosensitive semiconductor devices in which the action of visible rays, infra-red rays or ultra-violet rays causes variations in resistivity or generates an electromotive force, by the internal photoelectric effect. Photoemissive tubes (photoemissive cells) the operation of which is based on the external photoelectric effect (photoemission), belong to heading 85.40. The main types of photosensitive semiconductor devices are: (1) Photoconductive cells (light dependent resistors), usually consisting of two electrodes between which is a semiconductor substance (cadmium sulphide, lead sulphide, etc.) whose electrical resistance varies with the intensity of illumination falling on the cell. These cells are used in flame detectors, in exposure meters for automatic cameras, for counting moving objects, for automatic precision measuring devices, in automatic door opening systems, etc. (2) Photovoltaic cells, which convert light directly into electrical energy without the n....
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....ive semiconductor device determines its classification, rather than its end-use application. 6.3.9 As discussed above, it is clear that the aforementioned goods function as a photosensitive semiconductor device, fall within the scope of Chapter Heading 8541 (Semiconductor devices (e.g., diodes, transistors, and similar semiconductor devices, including photovoltaic cells, whether or not assembled in modules or made up into panels; light-emitting diodes (LED); mounted piezoelectric crystals). The Heading 8541, among others, covers as follows: Heading/Sub- heading/Tariff Item Dash Description 8541 Semiconductor devices (e.g., diodes, transistors, and similar semiconductor devices, including photovoltaic cells, whether or not assembled in modules or made up into panels; light-emitting diodes (LED); mounted piezoelectric crystals 8541.10.00 - Diodes, other than photosensitive or light- emitting u Free - diodes (LED) - Transistors, other than photosensitive transistors : 8541 21 00 -- With a dissipation rate of less than 1 W 8541 29 00 -- Other 8541 30 - Thyristors, diacs and triacs, other than photosen....