TaxTMI 
TaxTMI 
2026 (2) TMI 480
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....ctrical machines having individual functions under CTH 8543 or as parts of domestic washing machine under CTH 845090 by application of Note 2(b) to Section XVI. 2. M/s Samsung India Electronics Private Limited (hereinafter referred to as "the Applicant"), is a Private Limited company engaged in the production and sale of finished products, including televisions, refrigerators, washers, air conditioners, smartphones, and components such as semiconductors and display panels. The applicant is proposing to import "Resonator - Ceramic" (hereinafter referred to as "the subject goods"). 2.1 The applicant submitted that the subject good in question is an electronic component consisting of a piece of piezoelectric ceramic material. It is connected in an electronic circuit and functions as an oscillator, due to its inherent property of generating electronic signals which are resonant with mechanical vibrations experienced by it. It is made of a ceramic material Viz .. PZT (Lead Zirconium Titanate), which exhibits piezoelectric properties. In other words, the ceramic material is a mounted piezo electric crystal. 2.2 The subject goods are essentially based on piezoelectric crystals an....
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....und recorders and reproducers, and parts and accessories of such articles 8543 Electrical machines and apparatus, having individual functions, not specified or included elsewhere in this Chapter. XVI 85- 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 8548 Electrical parts of machinery or apparatus, not specified or included elsewhere in this Chapter. XVI 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 84509010 Parts of household type machines 3.2 The Applicant states that the subject good in question is essentially a PZT Ceramic crystal, which meets the definition of a mounted piezo electric crystal as described in the HSN Explanatory Notes under the heading 8541, with electric connections for transmitting the electrical signals that are classifiable under CTH 85416000. 3.3 The subject goods are essentially a mounted piezo electric crystal with electrical con....
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....ct goods in question are used in the PBA of a washing machine. Therefore, one possible alternative classification could be as parts of air-conditioner sunder CTH 845090 by applying Note 2(b) to Section XVI. As already seen the subject goods. in question could be classified under CTH 8541 by application of Note 2 (a) to Section XVI. Therefore, classification under CTH 845090 can be ruled out. Port of Import and reply from concerned jurisdictional Commissionerate 4. The applicant in their CAAR-1 indicated that they intend to import the subject goods i.e. ceramic resonator at the jurisdiction of Office of the Commissioner of Customs, ACC, Chennai. The application was forwarded to the Office of the Commissioner of Customs. ACC. Chennai for their comments vide letter dated 17.10.2025. 06.11.2025 and 27.11.2025. 4.1 Comments were received from the jurisdictional Commissionerate vide letter dated 02.01.2026 wherein it is submitted that classification of the product "Resonator-Ceramic. Model CSTLS8M00G53-A0" has been examined with reference to its material composition, electrical characteristics. mechanical functionality, and intended use. The item in question is the piezoelect....
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....adings." Accordingly, where a part has an independent identity and is covered by a specific heading in Chapter 85, it must be classified under that heading and not under the heading of the machine in which it is used. Here, the resonator is recognised globally as a discrete electronic timing device, and not as a general-purpose undifferentiated component. Its function of generating clock signals by exploiting the piezoelectric effect is technologically distinct from the functions of a washing machine, even though the washing machine control board depends on it. One possible alternative is Heading 8543, which covers "electrical machines and apparatus having individual functions, not specified or included elsewhere in this Chapter." However, this is a residuary heading whose scope expressly excludes goods already covered by other headings in Chapter 85. Since mounted piezoelectric crystals are specifically included in Heading 8541, Heading 8543 cannot apply. The interpretative sequence laid down in GIR 3(a) strengthens this point, requiring that "the heading which provides the most specific description shall be preferred to headings providing a more general description." Ano....
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....y under CTI 85416000 (That CTH 8543 and 8548 do not merit classification). He relied upon Note-2 of section XVI, GRIs, Note 12 of chapter 85, clarification and provisions given in the last lines of the Notes. He also relied upon US cross ruling attached with the application. 5.2 Nobody appeared on behalf of the Department for hearing. Discussion and findings 6. I have considered all the materials placed before me in respect of the subject goods. I have gone through the submissions made by the applicant during the personal hearing and comments received from the concerned Commissionerate. I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework. 6.1 At the outset, I find that the issue raised in the question in the Form CAAR-1 is squarely covered under Section 28H1(2) of the Customs Act, 1962, being a matter related to classification of goods under the provisions of this Act. 6.2 Before deciding the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act. 1975, Chapter/ Section notes along with HISN explanatory notes. As per Rule 1 of GRI, the titles of Sections, Chapters and sub-Chapte....
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.... electrical charges in the ceramics are individually attracted or repelled by the external electric charges, causing the ceramics to expand or contract. On the other hand, applying a pressure to piezoelectric ceramics generates positive and negative electric charges on opposing face of the piezoelectric ceramic. Conversely, if a tensile force to the same material, the polarity of the electric charges will be reversed. As described above, piezoelectric ceramics enable mutual conversion between electric energy and mechanical energy by utilizing polarization of the crystals. The ceramic resonators utilize the mechanical resonance of piezoelectric ceramics. typically of lead zirconate titanate (PZT), which provide various vibration behaviours (modes) depending on the resonance frequency. The subject goods are essentially based on piezoelectric crystals and are used in the Power Assembly Board (PBA) of an appliance's electronic oscillator circuit. When connected in an electronic oscillator circuit, resonant mechanical vibrations in the subject goods generate an oscillating signal of a specific frequency. Thereby, the subject goods are used as the ....
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....rs, diacs and triacs, other than photosensitive devices: 85413010 --- Thyristors 85413090 --- Other 854140 - Photosensitive semi-conductor devices, including photovoltaic cells whether or not assembled in modules or made up into panels; light emitting diodes: --- Photocells: 85414011 --- Solar cells whether or not assembled in modules or panels 85414019 --- Other 85414020 --- Light emitting diodes (electro-luminescent) 85414090 --- Other 85415000 - Other semi-conductors devices 85416000 - Mounted piezo-electric crystals 85419000 - Parts 6.7 The HSN Explanatory Notes under CTH 8541 in the relevant part, states as under: "These are mainly barium titanate (including polycrystalline polarised elements of barium titanate), lead titanate zirconate or other crystals of heading 38.24 (see the corresponding Explanatory Note), or quartz or tourmaline crystals. They are used in microphones, loudspeakers, ultrasonic apparatus, stabilised frequency oscillating circuits, etc. They are classified here only if mounted. They are generally in the form of plates, bars, discs, rings, e....
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....or material plays a critical and unreplaceable role of transducer function and performance, and the operation of which is based on semiconductor properties including physical, electrical, chemical and optical properties. (2) "Physical or chemical phenomena" relate to phenomena, such as pressure, acoustic waves, acceleration, vibration, movement, orientation, strain, magnetic field strength, electric field strength, light, radioactivity, humidity, flow, chemicals concentration, etc. (3) "Semiconductor-based sensor" is a type of semiconductor device, which consists of microelectronic or mechanical structures that are created in the mass or on the surface of a semiconductor and that have the function of detecting physical or chemical quantities and converting these into electric signals caused by resulting variations in electric properties or displacement of a mechanical structure. (4) "Semiconductor-based actuator" is a type of semiconductor device, which consists of microelectronic or mechanical structures that are created in the mass or on the surface of a semiconductor and that have the function of converting electric signals into physical movement. ....
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....m of the subject goods it is understood that the resonator in question is essentially a PZT Ceramic crystal mounted, with the electric connections for transmitting the electrical signals. The PZT crystal is mounted with an outercoat of epoxy support and connected with terminals. The subject goods are essentially a mounted piezo electric crystal with electrical connections specifically covered under CTH 854160. The resonator can be used in any machine where the resonator function is required and therefore the subject goods is not an identifiable part of any machine. Further, in terms of GIR 1, when goods are specifically described in a heading the classification under that heading is legally correct. Therefore, the subject goods are classifiable under CTH 85416000. Classification as parts of Washing machine 7. It has been stated that the subject goods in question are used in the PBA of a washing machine. Therefore, an another possible alternative classification could be as parts of air- conditioner sunder CTH 845090 by applying Note 2(b) to Section XVI. But in terms of the sequential application of ratio laid down by the Hon'ble Supreme Court in the matter of Delton Cables....