Xiaomi Technology India Limited Vs Commissioner of Customs (CESTAT Bangalore)
In a recent case, M/s. Xiaomi Technology India Limited v. The Commissioner of Customs [Customs Appeal No. 20653 of 2021 dated July 07, 2023], the CESTAT, Bangalore made a significant ruling. They overturned the Commissioner (Appeal)’s decision and clarified the classification of Liquid Crystal Display (LCD) Panels.
According to the CESTAT, LCD Panels should be classified under tariff entry 9013 8010. This decision was based on the understanding that LCD panels have applications beyond just television sets. Furthermore, the CESTAT also emphasized that parts of LCD panels should be classified separately under tariff entry 9013 9010. They established that these parts are integral components of the LCD panel itself and should not be considered as separate articles.
Facts:
M/s. Xiaomi Technology India Ltd. (“the Appellant”) is engaged in the business of manufacturing and trading of electronic products. The Appellant has imported parts of LCD panels for manufacturing television and classified such parts of LCD panels under tariff entry 9013 9010.
The Adjudicating Authority vide order in original (“the OIO”) classified the parts of LCD panels under tariff entry 8529 9090 by applying Note (2b) of Section XVI which states that goods which are parts and which is solely and principally used in CTH 8528 (Television) are to be classified under CTH 8529.
Aggrieved thereby, the Appellant appealed before the Commissioner (Appeal), who vide the Order in Appeal (“the Impugned order”) upheld the order passed by the Adjudicating Authority.
Aggrieved by the Impugned order the Appellant filed an appeal before the CESTAT, Bangalore.
Issue:
Whether parts of LCD panels will be classified as part of television or under heading of LCD panel?
Held:
The CESTAT, Bangalore Customs Appeal No. 20653 of 2021 held as under:
