TaxTMI 
TaxTMI 
2026 (8) TMI 656
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....-Original 01/2019- 2020/Elektron/JC/SII Import dated 02.04.2019 SCN Show Cause Notice No. 10/2020/PC/ACC (Import) dated 24.02.2020 Period of dispute 23.02.2015 to 20.12.2018 30.01.2019 2. The facts relevant for the present adjudication are that the appellant M/s Electron Lighting Systems Private Ltd [The appellant] the importer has imported a consignment under Bill of Entry No. 9853835 dated 30.01.2019 importing Light Emitting Diode [LED] module for manufacturing of LED light and fixtures declaring under Chapter Tariff Heading [CTH] 8538 11090 with total import value of Rs. 7823 228 Basic Customs Duty [BCD] @ of 10% was paid. However, on the basis of routine analysis on ICES, department noticed that the imported goods being raw material for manufacturing of LED light and fixtures were more appropriately classifiable under CTH 9405 9900 attracting BCD @ 20%. With this observation, the aforesaid consignment was put on hold and got 100% examined on 01.02.2019 by the officers of SIIB. Statement of the Director of the appellant namely Shri Vikas Nagpal was recorded on 05.03.2019. The goods of the said Bill of Entry, the reassessment thereof ....
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....posal has been confirmed vide the order-in-original dated 22.02.2021 as tabulated above. Being aggrieved of the said order that the importer M/s Elektron Lighting System Pvt Ltd is before this Tribunal. 4. We have heard Mr. B.L. Narasimhan, learned counsel assisted by, Shri Anurag Kapur and Shri Ashwin Sundaram for the appellant and Shri Rajesh Singh, learned authorised representative for the department. 5. Learned counsel for the appellant have submitted that the impugned goods are correctly classifiable under CTH 8541 4020 which covers LED (Elektro Luminescent Diodes). The HSN Explanatory Note to the said CTH provides that the LEDs are the devices which convert electric energy into visible light rays, however the goods do not have the control driver to control the input electricity so as to be usable LED irrespective the same is arranged on printed circuit board [PCB] Since the multiple LEDs on one single panel are meant only to ensure increased intensity of lightening but the essential character of the said goods to be that of an LED does not get alter. The HSN Note also clarifies that LED assembly is an LED package mounted on PCB which may include optical elements: therma....
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....9405 9900 cannot prevail over the said specific entry. decision in the case of Mauri East India Pvt. Ltd vs. State of UP reported as 2008 (225) ELT 321 S.C. and in the case of Dunlop India Ltd and Madras Rubber Factory Ltd vs. Union of India and others reported as 1983 (13) ELT 1566 S.C. The department reliance on the advance ruling issued by GST authority for advance ruling Tamil Nadu is not acceptable in the light of the aforesaid submissions and the decisions. 8. Finally while submitting about the extended period of limitation under 28(4) of the Customs Act, that the same is not invokable, it is mentioned that all the facts with respect to the import of impugned goods were well within the knowledge of the department. Many Bills of Entries were filed by the appellant-importer classifying the impugned goods under CTH 8541 4020 which had been cleared in past without any objection being raised by the department. It is only with respect to bill of Entry dated 30.01.2019 that for the first time, the classification declared by the appellant was objected. The classification was rather changed from CTH 8541 4020 to CTH 8538 1090 at the instance of the department as is apparent from pa....
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....fixtures are classifiable under CTH 854100/ 8539 9090 as claimed by the importer-appellant. Department on the other hand has alleged that the goods are classifiable under CTH 9405 9900. We observe that Classification of imported goods under the first schedule of Customs Tariff Act, 1975 is governed by the General Rules for Interpretation [GRI] of Import Tariff. As per Rule 1 of GRI, classification of goods shall be determined according to the terms of the headings and any relative Section or Chapter Notes. For the purposes of Rule 1 of GIR, the relative Section and Chapter Notes apply, unless the context otherwise requires. This is the first Rule to be considered in classifying any product. In other words, if the goods to be classified are covered by the words in a heading and the Section and Chapter Notes do not exclude classification in that heading, that heading would apply to the said goods. If such headings or notes do not otherwise require then the classification is to be determined in accordance with Rule 2 to 6 of said Rules. Rule 2(b) of GRI stipulates that the classification of goods consisting of more than one material or substance shall be according to the prin....
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....hat GRIs 1-4 must be applied sequentially as held by hon'ble apex court in the case of Commissioner Excise, Nagpur v. Simplex Mills Co. Ltd., reported in (2005) 3 SCC 51 and Secure Meters Limited V. Commissioner Customs, New Delhi, reported in (2015) 14 SCC 239). As already observed above GRI 1, which gives primacy to the headings and notes, is the non- negotiable starting point. GRI 2, which deals with incomplete, unassembled or composite goods or mixtures, often acts as an extension of GRI 1, by deeming the headings to include incomplete/unassembled goods or mixtures or combinations of a material or substance. GRI 3 is only invoked when the application of GRI 1 and/or GRI 2 results in a good being prima facie classifiable under two or more competing headings. GRI 3 exists solely to resolve this tie. GRI 4, the rule of last resort, is mutually exclusive to GRI 3 and is only invoked if GRI 1 and 2 have failed to find even one possible heading for the good. 14. Further we observe that the official interpretation of the HSN is provided in the Explanatory Notes published by the World Customs Organisation (hereinafter Explanatory Notes"). Therefore, these Explanatory Notes form the ....
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....ke a look of Tariff entries, (a) The CTH 8539 reads as under: 8539 - Electric filament or discharge lamps, including sealed beam lamp units and ultra-violet or infra-red lamps; arc-lamps; light-emitting diode (LED) lamps, as per Explanatory Notes, the CTH 8539 covers filament lamps, gas or vapour discharge lamps, arc-lamps and light-emitting diode (LED) lamps. Detailed HSN Explanator, Notes of the said CTH reads as follows: (F) Light-Emitting Diode (LED) lamps The light from these lamps is produced by one or more light-emitting diodes (LED). These lamps consist of glass or plastic envelope, one or more light-emitting diodes (LED), circuitry to rectify AC power and to convert voltage to a level useable by the LEDs, and a base (e.g. screw, bayonet or bi-pin type) for fixing in the lamp holder. Certain lamps may also contain a heat sink. These lamps are of various shapes, e.g. spherical (with or without a neck); pear or onion shaped; flame shaped; tubular (straight or curved); special fancy shapes for illuminations, decorations, Christmas trees, etc PARTS Subject to the general provisions regarding the classificat....
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.... lighting fittings for the vehicles of Chapter 86, for aircraft or for ships or Boats. 16. Reverting to the facts of the present case, it is an appellant's admitted fact on record that the impugned goods contain multiple LEDs arranged in a definite fashion or structure to produce more luminance compared to a single LED. The presence of multiple LEDs does not alter the characteristic of the impugned goods from being LEDs. Further, the impugned goods do not contain any active elements such as a driver or control gear. Without a driver or control gear the impugned goods cannot be used i.e., it is a dead part. Hence the product is denied to be lamp or even part of street lamp as claimed by appellant. Moreover, in the present case, as far as LEDs are concerned, there was no change in the scope of the Customs Tariff Item in the First Schedule of the Tariff Act except for a mere change in the CTI number. However, an amendment was introduced in the HSN EN to CTH 8541 which clarified and widened the scope of LED to include LED packages and LED assemblies retrospectively. 17. The CTH 8541, the Chapter heading thereof includes light emitting diodes (LED), though this entry covers diodes....