The Customs, Excise, Service Taxes Appellate Tribunal (CESTAT), Bangalore Bench ruled that no Custom Duty is applicable on LCD modules imported by the Continental Automative Components.
The appellants, Continental Automative Components is engaged in the business of development/manufacturing of components and systems for vehicles and providing the most modern automotive technologies to all the major brands in India.
The appellant, for the purpose of its business of manufacture of such products, imported 576 pieces of LCD- Module from Shanghai, China in six cartons, totally and filed a Bill of Entry at Air Cargo Complex, Bangalore, classifying the said item under CTH 90139010 having a Nil rate of BCD. The said bill of entry was facilitated through the RMS and the officers of SIIB, Bangalore took up this bill of entry for further verification and after obtaining documents from the appellants, consignment was opened and examined in detail by the SIIB officers.
The appellant received Order-in-Original holding that LCD modules imported by the appellant shall be classified under CTH 90299000 as parts of speedometer and charged to duty at 10% as applicable to this CTH and also vacating the appellant’s claim for duty paid under protest. Aggrieved by the said order, the appellant filed appeal before the Commissioner taking various grounds and the Commissioner vide the impugned order rejected the appeal mainly on the ground that the impugned goods are specially and solely meant for use in speedometers and they are not simple LCD.
The Coram of S.S.GAarg and P.Anjani Kumar held that the original authority, in spite of technical details given by the appellant, did not seek technical opinion before passing the Order-in-Original and has also failed to explain in its Order as to why the subject goods are different from plain LCDs.
The Tribunal held that LCDs are specifically provided in Tariff Item No. 9013 and as per Note 2(a) attached to Chapter 90, parts and accessories which are goods included in any of the Heading of the said Chapter 90 are to be classified in their respective Headings.
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