Order date – 29 March 2023

Parties – CCE, Aurangabad Vs M/S Videocon Industries Ltd.

Key Pointers –

• The Respondent, M/s VIDEOCON INDUSTRIES LTD, imported LCD panels and classified the same in Chapter Heading (“CH”) 9013.8010 [of the First Schedule to the Customs Tariff Act, 1975 (hereafter “CTA”)], as Liquid Crystal Devices- as opposed to the revenue’s stand, that they are classifiable as 85.29 "parts of goods falling under heading 85.28" [television sets falling in heading 85.28]. Videocon manufactures TV sets; the LCD panels are used by it, along with other items, such as printed boards, decoders, etc.
• The issue in this case is the classification of LCD panels under the Customs Tariff Act, 1975.
• The court observed that Note 1 (m), which excludes Chapter 90 goods (which includes LCD panels). More importantly, Note 2 opens with the expression “subject to Note 1”. This subordinates the entire subject matter in Note 2; it is only where the article is a “part” which acts as an accessory, that the enumerated portions of Chapter 85 come into play. Such an interpretation is plainly untenable.
• It was held that LCD panels are classifiable under Chapter 90, Entry 9013.8010, and not Chapter 85 as claimed by the revenue.