TaxTMI 
TaxTMI 
2025 (1) TMI 1755
X X X X Extracts X X X X
X X X X Extracts X X X X
.... a screen, which uses the LCD technology to display the relevant information. The information to be displayed on the LCD Panel includes information regarding navigation, cabin temperature controls, and music or entertainment information etc. It is relevant to note that throughout this Application, the terms "LCD Module" and "LCD Panel" are interchangeably used. 1.2. This product is used in the infotainment system of motor vehicles. This product contains a control circuit. This product does not have the IC decoder option to decode the encoded video signal. This product does not have the radio or FM functionality or navigation functionality. 1.3. The LCD panel so imported will be further assembled in India with other components, such as, Plastic front panel, Touch panel & LCD bracket to make sub assembly which then assembled with silver box into a fully finished Car Audio System (The LCD hence assembled can't be removed from the FG part) which will be supplied to original equipment manufacturers for fitting in motor-vehicles. The said Car Audio System (also known as an infotainment system) is classified under Tariff Item 85272900 by the Applicant. Details of the Touch Screen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....a. The LCD Panel (Part No. ETD000C00) in question satisfies the criteria under Heading 85.24 to be regarded as a Flat Panel Display Module. 1.12. The present application is inter-alia concerned with the appropriate classification of LCD Panel. Heading 85.24 of the First Schedule to the Tariff covers "Flat panel display modules, whether or not incorporating touch-sensitive screens". 1.13. The Tariff is aligned, up to the 6-digit level, with the Harmonized System of Nomenclature (hereinafter referred to as "HSN") issued by the World Customs Organization (hereinafter referred to as "WCO"). The HSN Explanatory Notes released by the WCO aid in the interpretation of the Headings of the Tariff and may be used as a safe guide for the same. It has been held so by the Hon'ble Supreme Court in the case of CC Vs. Business Forms - 2002 (142) ELT 18 (SC). 1.14. The classification of the goods under the Tariff is governed by the principles as enumerated in the General Rules of Interpretation ('GRI') set out in the Tariff. 1.15. As per Rule 1 of the GRI, classification of the products shall be determined according to the terms of the headings and any relative Section or Chapter Notes a....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... iii) The products does not include display modules which are equipped with components for converting video signals, iv) The products should not have otherwise assumed the character of goods of other headings. 1.19. Additionally, the HSN Explanatory Notes of Customs Tariff Heading (hereinafter referred to as "CTH") 8524 elaborate upon the scope of the said Heading. The said Explanatory Notes state that flat panel display modules designed to be attached to or incorporated in motor vehicles can be classified under CTH 8524. Further, the Explanatory Notes specify that the flat panel display modules that are not . integrated into other apparatus and presented separately are classified in this heading rather than the heading in which the finished products with flat panel display modules are classified. The relevant portion of the same is reproduced below: "This heading covers flat panel display modules, whether or not incorporating touch- sensitive screens, which are defined in Note 7 to this Chapter. The articles of this heading are equipped at a minimum with a display screen utilising liquid crystal display (LCD), ... .. or other display technologies ......
X X X X Extracts X X X X
X X X X Extracts X X X X
....er headings in the Nomenclature for the classification of flat panel display modules. In the present case, as the LCD screen is a flat panel display module, the same will be appropriately classifiable under CTH 8524. 1.25. Since this product is a flat panel display module made up of liquid crystals with control circuits, it would be appropriately classifiable under CTH 8524 91. At the eight-digit level, the sub-headings under CTH 8524 91 pertain to products used with the goods of CTH 8471 or CTH 8517 or CTH 8528. As this product is not used with the goods of the said Headings, it would be appropriately classifiable under the residuary entry of CTH 8524 91, i.e., Tariff Item 8524 91 90. b. Without prejudice to the above, the LCD Panel (Part No. ETD000C00) can be classified under CTH 85.29. 1.26. As the touch screen is a type of electronic product, the same would be appropriately classifiable under Chapter 85, which deals with 'Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles'. 1.27. Section Note 2 of Section XVI which specifies the ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ctly classifiable under the residuary entry of CTH 8529, i.e., Tariff Item 85299090. The relevant portion of the said Heading is reproduced hereunder for the sake of ready reference: Tariff Item Description 8529 PARTS SUITABLE FOR USE SOLELY OR PRINCIPALLY WITH THE APPARATUS OF HEADINGS 8524 TO 8528 852990 - Other : 85299090 --- Other 1.31. In view of the above discussion, it can be concluded that the Touch Screen (Part No. ETT000H00) is correctly classifiable under Tariff Item 8529 90 90. c. Without prejudice to the foregoing submissions, the LCD Panel is classifiable under CTH 85.43. 1.32. Without prejudice to the above, the Applicant submits that the LCD Panel can be classified under CTH 85.43 which covers 'Electrical Machines and Apparatus having individual functions', which are not included elsewhere in Chapter 85. 1.33. As given above, the LCD Panel is an identifiable part of the infotainment system. If the infotainment system is correctly classifiable under CTH 8543, then the LCD Panel would be correctly classifiable as a part of the infotainment system. 1.34. Parts of products of CTH 8543 are class....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ame is reproduced below: "This heading includes: (1) ... (2) ... (3) Flat panel display modules with touch-sensitive screens: Touch-sensitive screens are attached to the flat panel display modules or embedded in the cell. They allow input as well as output (display) of information such as images." 1.40. From the above, it can be inferred that touch sensitive screens, which are to be incorporated with flat panel display modules, are an identifiable part of the same. Hence, the same should be classified as a part of articles of CTH 8524. In the present case as well, since the touch screen is to be incorporated with the LCD panel, the same would be classifiable as a part of the LCD panel. 1.41. For classifying parts of articles of CTH 8524, it is relevant to refer to Section Note 2 of Section XVI, which specifies the rules to be followed for classification of parts of articles of this Section. The said Note states as follows: "2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to 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 accordin....
X X X X Extracts X X X X
X X X X Extracts X X X X
....IPALLY WITH THE APPARATUS OF HEADINGS 8524 TO 8528 852990 - Other : 85299090 --- Other 1.45. In view of the above discussion, it is submitted that the touch Screen is correctly classifiable under Tariff Item 8529 90 90. Without prejudice to the above, the Touch Screen is correctly classifiable under CTH 8537 1.46. The Harmonized System Committee (hereinafter referred to as "the Committee") in its 52nd Session dealt with the classification of a transparent resistive touch screen that can be used with a variety of apparatus incorporating a display, such as automated teller machines (ATMs), KIOSKs, point-of- sale/service (POSs) terminals, monitors and automatic data processing (ADP) machines. The Committee had noted that the said touch screen consists of "two thin transparent indium tin oxide (ITO) conductive layers separated by dot spacers and electric bus bars, which are laminated with a top layer of protective film of plastics and bottom layer of protective glass, and fitted with a flexible connector tail." Further, the Committee had noted the working of the said touch screen in the following words: "When the two ITO conductive layers are c....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s a type of electronic product, the same would be appropriately classifiable under Chapter 85, which deals with 'Electrical machinery and equipment and parts thereof; sound recorders and reproducers, television image and sound recorders and reproducers, and parts and accessories of such articles'. 1.51. As submitted above, it is reiterated that Section Note 2(a) of Section XVI, parts which are specifically included in any of the headings of Chapter 85 will be classified therein, except for the specified headings. 1.52. Heading 85.34, inter alia, covers "Printed Circuits". The relevant entry of the said Heading is reproduced below: Tariff Item Description 85340000 PRINTED CIRCUITS 1.53. To qualify as a Printed Circuit, the goods have to satisfy all the conditions mentioned in Note 8 to Chapter 85. The term "printed circuits" is defined in the said Chapter Note as follows: 8. For the purposes of headings 8534, "printed circuit" are circuits obtained by forming on an insulating base, by any printing process (for example, embossing, plating- up, etching) or by the "film circuit" technique, conductor elements, contacts or other printed components (for examp....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e classified in accordance with Note 2 to Section XVI or Note 2 to Chapter 90, as the case maybe." 1.55. On a conjoint reading of the aforesaid HSN Explanatory Notes and Chapter Note 8 of Chapter 85, it can be observed that for a product to be classifiable as a printed circuit, the said product should satisfy the following conditions: i) The circuits should be obtained by forming conductor elements, contacts or other printed components according to a pre- established pattern on an insulating base by any printing process; ii) There should not be any element on the circuit which can produce, rectify, modulate or amplify an electrical signal (for example, semi-conductor elements). iii) The circuit board should not be populated (i.e., there should not be circuits combined with elements other than those obtained during the printing process). iv) Mere individual, discreet resistors, capacitors or inductances cannot be considered as a "Printed Circuit". 1.56. In the present case, the Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) in question satisfy the aforesaid conditions and hence, can be said to be "Printed Circuits" in ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....d Articles and for Determination of Injury) Rules, 1995, the Central Government, after considering the aforesaid final findings of the designated authority, hereby imposes on the subject goods, the description of which is specified in column (3) of the Table below, falling under sub heading or tariff item of the First Schedule to the Customs Tariff Act as specified in the corresponding entries in column (2), originating in the countries as specified in the corresponding entries in column (4), exported from the countries as specified in the corresponding entries in column (5), produced by the producers as specified in the corresponding entries in column (6), and imported into India, an anti-dumping duty as a percentage of the CIF value of the subject goods as specified in the corresponding entries in column (7), of the said Table, namely :- TABLE SI. No. Sub - Heading or Tariff Item Description of Goods Country of Origin Country of Export Producer Duty as % of CIF 1 85340000 Printed Circuit Boards (PCBs)* China PR Any country including China PR Ji'an Shengyi Electronics Co., Ltd. Nil Shengyi Electronics Co., Ltd. 5 -do- -do- ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....90 90 or under Tariff Item 8543 90 00. (b) Question 2: What would be the correct classification of the Touch Screen (Part No. ETT000H00) under the First Schedule to the Tariff? Applicant's Understanding: The Touch Screen (Part No. ETT000H00) would be correctly classifiable under Tariff Item 8529 90 90. Without prejudice, the Touch Screen (Part No. ETT000H00) would be correctly classifiable under Tariff Item 8537 10 00. (c) Question 3: What would be the correct classification of Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) under the First Schedule to the Tariff? Applicant's Understanding: The Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) would be correctly classifiable under Tariff Item 8534 00 00. (d) Question 4: Whether any anti-dumping duty would be leviable on the proposed import of Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900)? If applicable, what would be the rate of the said anti-dumping duty? Applicant's Understanding: Anti-dumping duty at the rate of 14.78% would be leviable on the proposed import of the Printed Circuit Boards (Part Nos. 039555100, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....may be used as a safe guide for the same. It has been held so by the Hon'ble Supreme Court in the case of CC Vs. Business Forms - 2002 (142) ELT 18 (SC). 5.3 The classification of the goods under the Tariff is governed by the principles as enumerated in the General Rules of Interpretation ('GRI') set out in the Tariff. As per Rule 1 of the GRI, classification of the products shall be determined according to the terms of the headings and any relative Section or Chapter Notes and, provided such headings or Notes do not otherwise require, according to the remaining Rules of the GRI. The product in question is a Flat Panel Display Module and is specifically covered under the Heading 85.24. 5.4 Heading 85.24, inter alia, covers 'Flat Panel Display Modules, Whether or Not Incorporating Touch-Sensitive Screens'. The relevant entries of Heading 85.24 are extracted below: Tariff Item Description 8524 FLAT PANEL DISPLAY MODULES, WHETHER OR NOT INCORPORATING TOUCH-SENSITIVE SCREENS - Without drivers or control circuits : 852411 -- Of liquid crystals : 85241110 --- For the goods of sub-heading 8471 30 or 8471 41 ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....than the heading in which the finished products with flat panel display modules are classified. The relevant portion of the same is reproduced below: "This heading covers flat panel display modules, whether or not incorporating touch-sensitive screens, which are defined in Note 7 to this Chapter. The articles of this heading are equipped at a minimum with a display screen utilising liquid crystal display (LCD),................. or other display technologies .... This heading includes: (1)Flat panel display modules without drivers or control circuits, which are generally referred to as 'cells'. In the case of LCD cells, liquid crystals are placed between two sheets or plates of glass or plastics such as TFT substrates and colour filter substrates .... Those cells do not contain electrical parts such as drivers or control circuits, whether or not fitted with electrical connections or attached with polarizing plates. The articles of this heading are designed to be attached to or incorporated in a wide range of apparatus (e.g., refrigerators, automatic data processing machines, mobile phones and devices for transmission or reception of image....
X X X X Extracts X X X X
X X X X Extracts X X X X
....0) IN QUESTION IN THE PRESENT APPLICATION. 5.11 The Applicant submits that the Touch Screen in question in the present application are classifiable under Heading 85.29 of the Tariff as "parts suitable for use solely or principally with the apparatus of headings 8524 to 8528". Without prejudice to the above, this product would be correctly classifiable under Heading 85.37 of the Tariff. The Touch Screen in question satisfies the criteria under Heading 85.29 to be regarded as "parts suitable for use solely or principally with the apparatus of headings 8524 to 8528". 5.12 The present application is concerned with the classification to be adopted by the Applicant for the Touch Screen under Heading 85.29 of the First Schedule to the Tariff which covers "parts suitable for use solely or principally with the apparatus of headings 8524 to 8528". The product in question is specifically covered under the Heading 85.29. 5.13 As given above, the touch screen is to be attached to the LCD panel (which is a flat panel display module) and is to be used in the infotainment system of a motor vehicle. As the touch screen is a type of electronic product, the same would be appropriately classi....
X X X X Extracts X X X X
X X X X Extracts X X X X
....522, 8529 or 8538 as appropriate. However, parts which are equally suitable for use principally with the goods of headings 8517 and 8525 to 8528 are to be classified in heading 8517, and parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529;" 5.17 From a bare perusal of the above, it can be stated that in accordance with Section Note 2(a), parts which are specifically included in any of the headings of Chapter 85 will be classified therein, except for the specified headings. Thereafter, if a part cannot be classified as per Section note 2(a), then the same would be correctly classifiable as a part of an article of Chapter 85, as per Section Note 2(b). Section Note 2(b) has specified that parts of CTH 8524 would be classified under CTH 8529. Applying Section Note 2(a) to the present case, it can be observed that there is no specific heading for classification of touch screens under Chapter 85. Therefore, the classification of the touch screen in question is outside the ambit of Section Note 2(a) and will have to be done in accordance with Section Note 2(b). 5.18 As given above, the touch screen in the present....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed Circuit, the goods have to satisfy all the conditions mentioned in Note 8 to Chapter 85. The term "printed circuits" is defined in the said Chapter Note as follows: 8. For the purposes of headings 8534, "printed circuit" are circuits obtained by forming on an insulating base, by any printing process (for example, embossing, plating- up, etching) or by the "film circuit" technique, conductor elements, contacts or other printed components (for example, inductances, resistors, capacitors) alone or interconnected according to a pre- established pattern, other than elements which can produce, rectify, modulate or amplify an electrical signal (for example, semi-conductor elements). The expression "printed circuits" does not cover circuits combined with elements other than those obtained during the printing process, nor does it cover individual, discreet resistors, capacitors or inductances. Printed circuits may, however, be fitted with non- printed connecting elements. Thin-or thick-film circuits comprising passive and active elements obtained during the same technological process are to be classified in heading 8542. 5.22 Additionally, the HSN Explanator....
X X X X Extracts X X X X
X X X X Extracts X X X X
....board should not be populated (i.e., there should not be circuits combined with elements other than those obtained during the printing process); iv) Mere individual, discreet resistors, capacitors or inductances cannot be considered as a "Printed Circuit". 5.24 In the present case, the Printed Circuit Boards (Part Nos. 039555100, 039555000 and 039554900) in question satisfy the aforesaid conditions and hence, can be said to be "Printed Circuits" in terms of CTH 8534 due to the following reasons: i) The PCBs in question are obtained by forming printed components according to a pre-established pattern on an insulating base (i.e., FR4 which is used a laminate) by a printing process; ii)There is no mounting in the as is imported PCBs, There is no semi-conductor elements or any element on the PCBs in question which can produce, rectify, modulate or amplify an electrical signal; iii) The PCBs in question are not populated (i.e., the PCBs do not have any elements other than those obtained during the printing process); iv) The PCBs in question are not resistors, capacitors or inductances. Hence, they are not excluded from the ambit of CTH ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....F value of the subject goods as specified in the corresponding entries in column (7), of the said Table, namely :- TABLE SI. No. Sub - Heading or Tariff Item Description of Goods Country of Origin Country of Export Producer Duty as % of CIF 1 85340000 Printed Circuit Boards (PCBs)* China PR Any country including China PR Ji'an Shengyi Electronics Co., Ltd. Nil Shengyi Electronics Co., Ltd. 5 -do- -do- China PR Any country including China PR Shenzhen Kinwong Electronic Co., Ltd. 14.78% Jiangxi Kinwong Precision Circuit Co., Ltd. Kinwong Electronic Technology (Longchuan) Co., Ltd. Kinwong Electronic Technology (Zhuhai) Co., Ltd. 5.28 Further, certain types of PCBs are excluded from the ambit of the products under consideration in the ADD Notification. The relevant extract of the ADD Notification regarding the same is as follows: "* The following PCBs are excluded from the scope of the product under consideration: - i. PCBs with more than 6 layers; ii. PCBs for use in mobile phone applications; iii. Populated printed circuit boards of all sizes; iv. PCBs with e....