TaxTMI 
TaxTMI 
TaxTMI 
2026 (1) TMI 1359
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.... 1.1 The application is being preferred by M/s. Samsung Display Noida Private Limited ('Applicant') a company incorporated in India under the provisions of the Companies Act, 2017 and having its registered head office located at Noida. 1.2 The Applicant is presently engaged in the business of manufacturing of display assemblies used in the manufacturing of mobile phones at its manufacturing facility at Noida. Going forward, the Applicant also proposes to manufacture the display assemblies for use in manufacture of laptops and tablets. For manufacturing of display assemblies, the Applicant imports various inputs and parts including OLED cells, polarizer, Window Glass for manufacture of the display. 1.3 In this regard, the Applicant's request is to obtain clarity from the Customs Authority for Advance Ruling for classification of "Window Glass" ("product"), which shall be imported into by the Applicant at the Air Cargo Complex, New Delhi (INDEL 4). I. Overview of the product - Window Glass 1.4 The product imported by the Applicant, i.e., "Window Glass," or also known as "CG - Window" is a critical component of an electronic device's Display Assembly. The ....
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....for the user. * Circular polarizer: Suppresses mirror-like ambient reflections to improve contrast, especially in bright light, by converting and filtering polarized light. * Encapsulated glass (encapsulation layer): Seals the organic stack from oxygen and moisture to prevent degradation; adds rigidity and may integrate desiccants/barrier films. * OLED emissive stack: Organic layers that emit light when driven (anode/ITO, HIL/HTL, EML, ETL/EIL, cathode); determines color, brightness, efficiency, and lifetime. * Glass substrate: Dimensionally stable base providing flatness and thermal stability for precise layer deposition. * TFT backplane with OLED: Matrix of thin-film transistors and storage capacitors that address pixels, control current to the emissive diodes, and enable grayscale and refresh. * Heat sink: Spreads and dissipates heat to maintain efficiency, color stability, and lifetime while mitigating image retention 1.11 From the above, it is evident that the Cover Glass or Window Glass constitutes the final protective and optical layer of the Display Assembly ecosystem. Thus, Window Glass is essential for the completio....
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....risks: Higher handling damage rates and alignment challenges without a rigid, flat protective outer layer. 1.13 Given the functionality traits above and the shortcomings that a display panel may entail in the absence of window glass, the Window Glass is not a mere aesthetic or protective addition, but a functional necessity that ensures the integrity, performance, and longevity of the entire Display Assembly. It completes the display module, creating a contained ecosystem within which all internal components operate efficiently. II. The Applicant qualifies as an 'applicant' under Section 28E(c) of the Customs Act, 1962 ("Customs Act") 1.14 Section 28E(c) of the Customs Act reads as under: "(c). "applicant" means any person - (i) holding a valid Importer-exporter Code Number granted under section 7 of the Foreign Trade (Development and Regulation) Act, 1992; or (ii) exporting any goods to India; or (iii) with a justifiable cause to the satisfaction of the Authority, who makes an application for advance ruling under section 28H; " 1.15 The Applicant is a company registered in India and is holding a valid Importer-Export....
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....fore any officer of customs, the Appellate Tribunal or any Court. 1.19 As per Section 281 (2)(a) of the Customs Act regarding procedure on advance ruling application, no application for advance ruling will be accepted if the question raised in the application is already pending before any forum. Relevant extracts of the provision are reproduced below: "28I. Procedure on receipt of application. - (1) ... ... (2) The Authority may, after examining the application and the records called for, by order, either allow or reject the application: Provided that the Authority shall not allow the application where the question raised in the application is - (a) already pending in the applicant's case before any officer of customs, the Appellate Tribunal or any Court, (b) the same as in a matter already decided by the Appellate Tribunal or any Court." (Emphasis supplied) 1.20 The Applicant submits that question raised in the Application is not already pending before any officer of Customs, the Appellate Tribunal, or any court in relation to the Applicant. Further, the question raised in the present case, have not already been de....
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....ith the applicable duty structure on import of goods and the Second Schedule deals with the applicable duty structure on export of goods. 1.30 To determine the said rates of BCD applicable on the imported good it is important to identify the tariff heading in which the good would fall under the First Schedule of the Tariff Act. 1.31 Classification of goods covered under the Customs Tariff is done as per the General Rules of Interpretation ('GIR'). GIR 1 to 5 lay down the principles for determining classification of goods under a specific Heading whereas GIR 6 is applicable if the objective is to determine the classification of goods in the Sub-headings of a Heading. 1.32 GIR 1 stipulates that the goods under consideration should be classified in accordance with the terms of the Headings and any relevant Section or Chapter Notes. These Section or Chapter Notes and Sub-Notes give detailed explanation as to the scope and ambit of the respective Sections and Chapters. These Notes have been given statutory backing and have been incorporated at the beginning of each Section/ Chapter. For ready reference, Rule 1 is extracted herein below: "Classification of goods....
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....lso got to be taken into account while determining the classification of an item. (d) Aforementioned aids and assistance are more important than the names used in the trade or common parlance in the matter of correct classification. 1.37 It was held by the Hon'ble Supreme Court in L.M.L Limited Vs. Commissioner of Customs, [2010 (258) E.L.T. 321 (S.C.)] that in order to resolve a dispute on tariff classification, internationally accepted nomenclature emerging from HSN Explanatory Notes is a safe guide. Further, HSN Explanatory Notes are also dependable guide for interpretation of Customs Tariff. Some other judicial pronouncements wherein this proposition was also affirmed, upheld and followed have been enumerated below: i.CC Vs. Gujarat Perstorp Electronics Ltd., [(2005)7 SCC 118, (2005) 186 E.L.T. 532 (3-member S.C. bench)]; ii. CCE Vs. Phil. Corporation Ltd, [(2008) 223 E.L.T. 9 (S.C.)]. 1.38 Therefore, the HSN Explanatory Notes are an important aid for ascertaining the classification of a good, in addition to the GRI and corresponding Chapter Notes and Section Notes. 1.39 In the light of above facts, to analyze the classification of above ....
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....in sandwich form, with one or more interlayers of plastics between two or more sheet of glass. The plastics core usually consists of sheets of cellulose acetate, vinyl or acrylic products. Complete adhesion is obtained by applying considerable heat and pressure, sometimes after spraying the inside surfaces of the glass sheets with a special type of adhesive. Another method is to produce a plastics film directly on the glass sheets are then sealed together by applying heat and pressure. A characteristic of toughened glass is that under the effect of shock it breaks into small pieces without sharp edges or even disintegrates, thus reducing the danger of injury from flying fragments. Laminated safety glass normally cracks without shattering, but should the impact be great enough to fracture it, any flying pieces would not usually be sufficiently large to cause severe cuts. For special purposes, wire mesh may be incorporated in the laminated glass, or the plastics interplay may be coloured. Because of these qualities these types of glass are used in motor car windscreen and windows, in doors, in ships portholes, in ships portholes, in protective goggles for industrial....
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....ors, shower enclosures, and certain types of furniture. Further, the HSN Explanatory Notes to CTH 7007 also states that when safety glass is incorporated in other articles and thus it in forms a part of machines, appliances or vehicles, then it is to be classified with those machines, appliances or vehicles. For illustration, the HSN Explanatory Notes to CTH 7007 states that goggles containing lenses of safety glass fall in CTH 9004. 1.46 In the present case, the imported product, "Window Glass" is composed of chemically toughened glass, which falls within the broad technical definition of toughened (tempered) glass as recognized under HSN Explanatory Notes to Heading 7007. The chemical toughening process enhances its mechanical strength, resistance to bending, impact, and thermal shock, aligning with the physical attributes of safety glass. 1.47 However, the functional use of the product is markedly distinct from that of general-purpose safety glass described in Heading 7007. The "Window Glass" is not traded, sold, or used as an independent article of safety glass. Instead, it constitutes an integral and inseparable layer of an electronic Display Assembly, which in turn form....
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....ading 7007 stands excluded. ANALYSIS UNDER CTH 8529 1.54 In view of the above, we now proceed to analyze the classification of the product under CTH 8529. Before delving into the specific provisions of CTH 8529, it is essential to first examine the Section Notes to Section XVI of the First Schedule to the Tariff Act, which encompasses both Chapters 84 and 85. Notably, Note 2 to Section XVI provides guidance on the classification of parts of machines covered under these Chapters. The Note lays down three rules: "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 articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified accordingly 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. (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543)....
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....e phone is classifiable under CTH 8524, which covers "Flat panel display modules, whether or not incorporating touch-sensitive screens." As per Note 2(b) to Section XVI, parts suitable for use solely or principally with the goods of heading 8524 are required to be classified under heading 8529. This interpretation is further reinforced by the HSN Explanatory Notes to heading 8524, which expressly state that, "subject to the general provisions regarding classification of parts (see the General Explanatory Note to Section XVI), parts of the apparatus of this heading are classified in heading 8529." 1.59 Based on the functional characteristics and intended use of the Window Glass, it is evident that its principal role is to act as a protective cover for the OLED layer of the Display Assembly. It serves as a barrier safeguarding the sensitive internal components while allowing the overall display unit to perform optimally. Given that the Window Glass is designed for use solely and principally in the manufacture of the Display Assembly, it satisfies the criteria laid down in Note 2(b) and, therefore, merits classification under CTH 8529. Classification at six-digit and eight-digit....
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....ly designed and used solely as a part of IFPDs, it is more appropriately classifiable under CTH 8529 90 90, which covers parts suitable for use solely or principally with monitors. 1.64 Applying the above ratio to the present case, it becomes evident that the Window Glass under consideration shares significant functional and contextual similarities with the "toughened glass" examined in the aforementioned advance ruling issued by the Hon'ble CAAR, Mumbai. The Window Glass, much like the toughened glass in that case, is not a standalone product; rather, it is specifically designed and engineered to be integrated into the Display Assembly of mobile phones, tablets, or laptops. It performs a critical role in protecting the underlying display components while enabling optimal touch sensitivity and visual clarity. The CAAR Mumbai's reasoning that a component, though potentially classifiable under a different heading in isolation, must be classified as a part under CTH 8529 90 90 when it is solely or principally used in conjunction with apparatus of headings 8524 to 8528, applies squarely to the present case. Therefore, in line with the principles laid down in the cited ruling....
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....vailable in this Section, no such case of the applicant is pending with any officer of the Customs, other Appellate Tribunal or any Court as per proviso of Section 28(I) (2) of Customs Act, 1962. (iii) Specify whether the claim of the applicant regarding the nature of activity, Le ongoing/proposed is correct: As per available records, the applicant at this port have not imported item Window Glass before. (iv) Comments on merit of the question raised in the application, along with all materials in support thereof: Question of law of fact "The whether the window Glass imported by the applicant merits classification under CTH 85299090 of the first schedule of the Tariff Act?, Comment: The Applicant is presently engaged in the business of manufacturing of display assemblies used in the manufacturing of mobile phones at its manufacturing facility at Noida Going forward, the Applicant also proposes to manufacture the display assemblies for use in manufacture of laptops and tablets. For manufacturing of display assemblies, the Applicant imports various inputs and parts including OLED cells, polarizer, Window Glass for manufact....
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....ty glass fall in CTH 9004" As exclusion clause is given which substantiate that the subject goods do not hold merit under CTH 7007. Then, it may be classified anywhere else wherein they are intended to be used which is display assembly eventually to be used in the manufacturing of Mobile Phone/Laptop/Tablet The Subject goods are Window Glass, a safety glass/protective layer and being a Child part of the Display Assembly which itself is a part of main appliance ie. Mobile or ADP Machine(Laptop/Tablet). Then "display assembly" classification merit, as per CTH. need to be checked under their respective heading For Mobile To begin with, it is important to understand how the term Display Assembly is being interpreted in the trade parlance of the mobile phone industry. A Display Assembly generally refers to the combined front display module of a mobile device, which may include the Cover glass, Circular polarizer, encapsulated glass, OLED emissive stack, Glass substrate, TFT backplane with OLED or LED/LCD and heat sink and other integrated components, depending on the manufacturer. For a long time, the industry faced continuous interpretationa....
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....Whether the question raised is pending before any Officer of Customs, the Appellate Tribunal or any court: As per records available in the Section, no such case of the applicant is pending with any officer of the Customs, other Appellate Tribunal or any Court. 3. Personal Hearing: Personal hearing in the matter was conducted through virtual mode on 09.01.2026 wherein the authorized representative of the applicant i.e. Sh. Gautam Khattar, Sh. Anurag Sehgal, Ms. Yashi Srivastava, Sh. Devansh Singhal, Sh. Deepak Pandey and Sh. Sandeep Singh attended the same and reiterated the submissions which were already submitted with the application of the applicant. 4. Findings, Discussion & Conclusion: 4.1 Having examined the CAAR-1 application, the comments received from the jurisdictional Customs Commissionerate, the record of personal hearing held on 09.01.2026 the applicable legal framework, I find the application to be valid in terms of the Customs Act, 1962 and the CAAR Regulations, 2021. I therefore allow the application in terms of Customs Act & CAAR regulations and proceed to determine the classification of the proposed imports on the basis of the information on re....
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.... thereby completing the exterior interface for the user. * Circular polarizer: Suppresses mirror-like ambient reflections to improve contrast, especially in bright light, by converting and filtering polarized light. * Encapsulated glass (encapsulation layer): Seals the organic stack from oxygen and moisture to prevent degradation; adds rigidity and may integrate desiccants/barrier films. * OLED emissive stack: Organic layers that emit light when driven (anode/ITO, HIL/HTL, EML, ETL/EIL, cathode); determines color, brightness, efficiency, and lifetime. * Glass substrate: Dimensionally stable base providing flatness and thermal stability for precise layer deposition. * TFT backplane with OLED: Matrix of thin-film transistors and storage capacitors that address pixels, control current to the emissive diodes, and enable grayscale and refresh. * Heat sink: Spreads and dissipates heat to maintain efficiency, color stability, and lifetime while mitigating image retention Thus, the Cover Glass or Window Glass constitutes the final protective and optical layer of the Display Assembly ecosystem. Thus, Window Glass is essential for the ....
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....arp edges or even disintegrates, thus reducing the danger of injury from flying fragments. Laminated safety glass normally cracks without shattering, but should the impact be great enough to fracture it, any flying pieces would not usually be sufficiently large to cause severe cuts. For special purposes, wire mesh may be incorporated in the laminated glass, or the plastics interplay may be coloured. Because of these qualities these types of glass are used in motor car windscreen and windows, in doors, in ships portholes, in ships portholes, in protective goggles for industrial workers or drivers, and for eyepieces for gas makes or divers' helmets. Bullet proof glass is a special type of laminated glass. This heading makes no distinction between unshaped and shaped (e.g., bent or curved) glass. However, curved safety glass having the character of clock or watch glasses or of a kind used for sunglasses is classified in heading 70.15. Safety glass incorporated in other articles and thus in form of parts of machines, appliances or vehicles is classified with those machines, appliances or vehicles; similarly goggles containing lenses of safety glass fall i....
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....XVI of the First Schedule to the Tariff Act Section Notes to Section XVI of the First Schedule to the Tariff Act, encompasses both Chapters 84 and 85. Notably, Note 2 to Section XVI provides guidance on the classification of parts of machines covered under these Chapters. "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 articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified accordingly 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. (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525....
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....s part of a larger finished product, namely, a mobile phone/tablet/laptop. 4.4.1.3 The Window Glass imported by the Applicant has no separate end-use apart from being laminated into the Display Assembly. It is engineered and tailor made to meet precise optical, dimensional, and adhesive specifications unique to electronic display technology. Although the product is technically a type of toughened (tempered) glass, it being an integral party of the Display Assembly is not classifiable under CTH 7007 but rather under the tariff heading corresponding to parts of Display Assembly on account of HSN Explanatory notes to Heading 7007 which states that, "Safety glass incorporated in other articles and thus in form of parts of machines, appliances or vehicles is classified with those machines, appliances or vehicles". In this background, 'Window Glass' do not merit classification under CTH 7007. 4.4.2 Heading 8529 covers "Parts suitable for use solely or principally with the apparatus of headings 85.25 to 85.28". Before exploring the specific provisions of CTH 8529, it is essential to first examine the Section Notes to Section XVI of the First Schedule to the Tariff Act, wh....
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....eading of Note 2 to Section XVI, it becomes evident that the classification of any part depends primarily on whether it is independently covered under a heading of Chapter 84 or 85 or whether it is suitable for use solely or principally with a specific kind of machine. In the present case, the product under consideration, i.e., the Window Glass, constitutes an essential and functional part of the Display Assembly used in Mobile phones, laptops or tablet. The Window Glass forms the outermost protective layer of the Display Assembly, ensuring both durability and usability of the device. Without this component, the underlying layers of the Display Assembly cannot perform their functions effectively 4.4.2.4 It is pertinent to note that the Display Assembly of a mobile phone is classifiable under CTH 8524, which covers "Flat panel display modules, whether or not incorporating touch- sensitive screens." As per Note 2(b) to Section XVI, parts suitable for use solely or principally with the goods of heading 8524 are required to be classified under heading 8529. Further, the HSN Explanatory Notes to heading 8524, expressly state that, "subject to the general provisions regarding classifi....