TaxTMI 
TaxTMI 
2026 (2) TMI 1346
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....in lieu of confiscation of goods valued at RS. 4,42,02,44/- seized on 5.6.2012 which were provisionally released on bond on 12.6.2015. 2. The appellant claims to be one of the leading consumer electronics companies in India and that it has been importing LCD Panels for manufacture of LCD/LED TV Sets. During the period from 18.09.2012 to 07.05.2015 it self-assessed duty classifying the imported goods as LCD/LED Panels under Customs Tariff Item [CTI] 8529 90 90 and availed the benefit of exemption under Sl. No. 432 of Notification No. 12/2012-Cus dated 17.03.2012 [2012 Notification]. This notification provided for standard rate of duty of 20% for LCD and LED TV panels of 20 inches and above. 3. The Special Intelligence and Investigation Branch [SIIB] of the Commissionerate investigated the appellant's imports and came to the conclusion that the imported goods were not LCD/LED TV panels but were Open Cells/semi-finished assemblies, missing critical components such diffuser sheets, reflector sheets, LED bars, etc. and hence were correctly classifiable under CTI 9013 80 10 to which the benefit of notification no. 12/2012 (S.No. 432) was not available. The SCN was issued accordingl....
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.... CTI 8529 90 90. Alternatively, they are classifiable under CTI 9013 80 10. (ii) CTH 9013 covers Liquid Crystal Devices (LCDs) which are not covered under any other heading. 'Liquid Crystal Devices' are defined under the HSN Explanatory Notes to CTH 9013 as follows: "Liquid crystal devices consisting of a liquid crystal layer sandwiched between two sheets or plates of glass or plastics, whether or not fitted with electrical connections, presented in the piece or cut to special shapes and not constituting articles described more specifically in other headings of the Nomenclature." (iii) The disputed goods imported by the appellant are Liquid Crystal Devices manufactured by sandwiching the liquid crystal layer between sheets of glass, cut into special shapes so that they can be used as display of television. Therefore, they are correctly classifiable under CTI 9013 80 10 which attract nil rate of duty. (iv) As per Note 2(a) to Section XVII of the Customs Tariff, parts which are goods independently classifiable under Chapters 84, 85, 90 or 91, would continue to be classified in their respective headings. Since the imported goods were parts of televi....
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....correctly described the disputed goods as LED Panels-semi-Finished and if an LED bar is attached, it becomes finished LED Panel. Even though the disputed goods are not finished forms of LED Panels, they will still be eligible for exemption under Sl. No. 432 of the subject Notification as finished LCD Panels. (ix) Extended period of limitation under section 28(4) is not invocable in the present case and the entire period of demand is for extended period of limitation. (x) Even if it is assumed that the disputed goods imported by the Appellant are not eligible for exemption, even then the Appellant is not liable to pay any differential duty, interest, fine and penalty. Hence, the impugned order passed by Ld. Pr. Commissioner is bad in law and therefore liable to be set aside. Submissions on behalf of the Revenue 9. Learned Special Counsel for the Revenue made the following submissions: i) The appellant imported goods declared as "LED TV panels- Semi-finished", self-assessed the Bills of Entry classified the goods under CTI 8529 90 90 and claimed the benefit of exemption notification no. 12/2012- Cus. (S.No. 432). This notification allowed standard rat....
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....ommissioner has correctly held that open cells or semi-finished LCD Panels are not eligible for exemption notification 12/2012-Cus (Sno. 432). xi) Since the appellant mis-declared the imported goods as LCD /LED TV panels when they were actually open cells, extended period of limitation was correctly invoked by the Commissioner. Findings 10. We have considered the submissions advanced by both sides and perused the records of the case. The five questions which fall for consideration in this case are: (i) Whether the goods imported by the appellant were LCD/LED Panels as claimed by the appellant or 'Open cells' as held in the impugned order? (ii) Consequently, whether they are classifiable under CTI 8529 90 90 eligible to exemption under Sl. No. 432 of Notification No. 12/2012-Cus dated 17.03.2012 or whether they are classifiable under CTI 9013 80 10 and hence not eligible to the exemption? (iii) Was the extended period of limitation under section 28(4) of the Act correctly invoked in the impugned order? (iv) Consequently, was the penalty under section 114A of the Act correctly imposed? (v) Were the goods which were seized on....
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....eeing the sample of the imported goods in the SIIB, he gave his opinion in writing on the official letterhead on 3.12.2015. As per this opinion, LCD/LED Panels have, in addition to 'Open Cells', have the following parts: (i) Front frame (ii) Middle Frame (iii) Diffuser sheet 1 (upper) (iv) Diffuser sheet 2(Prism sheet) (v) Diffuser sheet 3 (lower) (vi) Reflector sheet (vii) LCD/LED Bar (viii) Back cover 16. Thus, according to both Mr. Malhotra, who was in similar business and according to Shri Thakur of Samsung India (which is the Indian unit of the manufacturer), the 'open cell' will become an LCD/LED Panel if the diffuser sheets, reflector sheet and the frame (front, middle and back) are added. 17. By contrast, according to this opinion of Shri Agarwala of IIT Delhi, an Open Cell consists of two high light transmission glass plates pressed together with a 3-4 μm color LCD sheet and a source PCBA embedded with the LCD glass or provided separately. If T-Con Board driver PCBA is added, the open cell becomes an LCD Panel. The following parts not, according to him, part of the LCD Panel but are only part ....
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....er he knew what was a Timer Control Board (since he knew it only as T-Con Board). Questions about samples and seals would have been relevant if the nature of their samples, their contamination or if the samples have been switched, etc. were questions of dispute but such is not the case of the appellant. 25. Shri Thakur did not appear for cross-examination and the Commissioner recorded in the impugned order that he was not traceable. 26. The appellant sought to present experts from Samsung display from their side but this request was declined by the Commissioner. Shri Agarwala of IIT Delhi was also not examined by the Commissioner regarding his expert report. 27. The Commissioner concluded in the impugned order that the imported goods were 'Open cells' and not LCD Panels. We find that there is a clear difference of opinion between Shri Malhotra, Shri Thakur and Shri Agarwala, which, in short, is whether the diffusers, reflectors, films, cushions, frame and cover have to be added to the Open cell to make it an LCD Panel or merely adding a T-Con Board to the Open cell will make it an LCD Panel. There is no clear evidence either way. Shri Malhotra was in the business of same g....