TaxTMI 
TaxTMI 
2026 (8) TMI 1233
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.... Department formed an opinion that goods are classifiable under tariff item 85241100 attracting 15% BCD ad valorem. In view of these observations, the goods were kept on hold by the Special Intelligence and Investigation Branch [SIIB] for examination thereof. The documents related to said airway bill that is commercial invoice dated 18.7.2022 was also called from the custodian from which the value of the goods was also found to be on lower side. 2. On being inquired, the importer vide letter dated 25.08.2022 submitted that he has imported goods to be used for resale to supply to dealers and retailers of laptop, so they could supply to end user for replacing faulty laptop LCD screens, it was also submitted that the goods were not equipped with the components for converting video signals example scalar IC, decoder IC or application processor. The importer also provided the product specifications of both the models of goods imported wherefrom department observed that the imported goods are with Light Emitting Diode [LED] back light instead of fluorescent backlight. Thus the goods alleged to be LED/ Liquid Crystal Displays [LCD] with diode emitting backlight without equipment of any....
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.... the appellant under tariff item 84733099. It is submitted that the proprietor of appellant has categorically stated that the imported items are LCD panels with end use thereof in repair of faulty laptop, LCD screen. Thus the goods have wrongly been classified as flat panel displays. The imported goods are specifically made for laptop computers and are compatible with limited models of laptop of different brands. The same cannot be used for any other purpose or with any other device or apparatus. 4.1 Learned counsel further impressed upon that even the automatic data processing machines of CTH 8524 are eligible for duty exemption in terms of serial no. 29 of notification no. 24/2005-Cus dated 01.03.2005 however, the adjudicating authority has wrongly declined the said submission on a presumptive ground that the said exemption is available only on liquid crystal devices whereas the imported product is a Light Emitting Diode. The show cause notice para 6 & 9.2 thereof acknowledges that at the time of examination the goods were found to be laptop, LCD panels. The findings of the original authority are contrary to those observations. The Chartered Engineer report has wrongly been re....
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....NTAX 104. S.C. is relied upon wherein it has been held that the classification of the goods has to be based upon the identity of the goods at the time of import and not on their eventual use. Since the goods at the time of examination were the flat display panels which the chartered engineer has reported to be LED panels, the end use of those panels with computer cannot be the criteria for deciding the classification. With these submissions, the order under challenge is mentioned to be well reasoned order. The appeal is, accordingly, prayed to be dismissed. 6. Having heard both the parties perusing the entire record, the following issue is observed to be the point of contention for the present adjudication. 7. Whether the goods imported by the appellants i.e. Laptop, LCD panels (two models, both of INNOLUX brand) are classifiable under CTH 84733099 as is declared by the appellants which attracts nil BCD or the goods are classifiable under tariff item 85241100 as alleged by the department which attracts 15% BCD ad volerum. 8. To adjudicate the said issue we recognize that the classification disputes, particularly, in the harmonise nomenclature i.e. HSN era require careful c....
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....omposite goods consisting of different materials or made up of different components, and goods put up in sets for retail sale, which cannot be classified by reference to (a), shall be classified, as if they consisted of the material or component which gives them their essential character, insofar as this criterion is applicable. (c) when goods cannot be classified by reference to (a) or (b), they shall be classified under the heading which occurs last in numerical order among those which equally merit consideration. 4. Goods which cannot be classified in accordance with the above rules shall be classified under the heading appropriate to the goods to which they are most akin. 5. In addition to the foregoing provisions, the following rules shall apply in respect of the goods referred to therein: (a) camera cases, musical instrument cases, gun cases, drawing instrument cases, necklace cases and similar containers, specially shaped or fitted to contain a specific article or set of articles, suitable for long-term use and presented with the articles for which they are intended, shall be classified with such articles when of a kind normally sold there....
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.... tariff description and classification, a ready reckoner is the internationally accepted nomenclature in the HSN. That being said, we must hasten to reiterate what was pointed out in Wood Craft Products Ltd.. If the headings/entries in the First Schedule to the Act of 1985 are different from the headings/entries in the HSN or if they are not fully aligned, reliance cannot be placed upon the HSN for the purpose of classifying those goods under the Act of 1985. 17. To sum up, the First Schedule to the Act of 1985 is based on the HSN, which is an internationally standardized system developed and maintained by the World Customs Organization for classifying products, and unless the intention to the contrary is found within the Act of 1985 itself, the HSN and the Explanatory Notes thereto, being the official interpretation of the Harmonized System at the international level, would be of binding guidance in understanding and giving effect to the headings in the First Schedule. 11. Now we peruse the entries in question: Tariff Item Description of goods Unit Rate of Duty Standard Preferential Areas (1) (2) (3) (4) (5) 8473 ....
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.... statement under 108 of the Customs Act or from the Chartered Engineer's report continues to remain that of flat panel display module. The imported goods is not integrated into the computer and is capable of being presented separately for this sole reason it comes out of the scope of being called as part or accessory of the computer. 13. Further we observe that the Chapter Note ii of CTH 8524 reads as follows: "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 images or data, digital cameras and video camera recorders, monitors and reception apparatus for television and motor vehicles for the transport of persons). However, 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." 14. Further we observe that certain flat panels have been excluded from the scope of 8524 which are as follows: The heading exclude....