Texmaco Rail Engineering Limited Vs Commissioner of Customs (Port) (CESTAT Kolkata)
Summary:CESTAT Mumbai allowed Philips India Limited’s appeal concerning classification of LCD monitors imported for use with medical equipment such as ultrasound machines, X-Ray machines and CT Scan systems. The disputed imports covered the period from 29.07.2017 to 26.02.2022. Philips had classified the monitors under CTI 8528 5200 and paid IGST at 18%, whereas the department proposed classification under CTI 8528 5900 and IGST at 28% under Serial No. 154 of Notification No. 01/2017-Integrated Tax (Rate) dated 28.06.2017. The Tribunal examined the tariff entries under heading 8528, the HS Explanatory Notes, CBIC Circular No. 33/2007-Customs dated 10.09.2007 and the technical characteristics of computer and TV/video monitors. It found that the impugned monitors were capable of being connected to ADP machines and possessed characteristics relevant to computer monitors. The Tribunal also held that Serial No. 384 referred to heading 8528 and did not require classification specifically under CTI 8528 5200. It concluded that the monitors were classifiable under CTH 8528 52 00 and attracted IGST at 18%. The impugned order dated 21.07.2023 was set aside and the appeal was allowed on 18.11.2024.
Background
Philips India Limited imported LCD monitors through the Air Cargo Complex, Mumbai, for use with medical equipment including ultrasound machines, X-Ray machines and CT Scan systems. During the disputed period from 29.07.2017 to 26.02.2022, the appellant classified the LCD monitors under Customs Tariff Item (CTI) 8528 5200 and claimed IGST at 18% applicable to computer monitors under Serial Nos. 383C and 384 of Schedule III to Notification No. 01/2017-Integrated Tax (Rate) dated 28.06.2017.
