CCE Aurangabad Vs Videocon Industries Limited(Supreme Court)
Date:29th March 2023
Sub-Whether LCD panels are to be classified as part of television sets or audio players or independently for charging Customs duty?

The Apex Court in this case was dealing with the classification of LCD Panels which were imported and were to be used as part of television manufacturing or for manufacturing audio players in car. The LCD panels could have been used independently also for other purposes. The department wanted to classify these panels “part of television sets” and accordingly levy higher customs duty. However, the assessee contended that the commercial identity test had to be applied and not the functional test in order to determine correct entry under which the LCDs were to fall. The Ld Judges relying on general rules of interpretation and decisions in the case of UNI Products India Ltd , Delton Cables ltd held that when goods are excluded from a particular chapter, the “pull in” through a note has to be narrowly construed, as otherwise, the basis of exclusion would be defeated, and the earlier note (of exclusion) rendered redundant. Thus the department’s SLP was dismissed.

This judgement would be helpful in interpreting classification disputes in GST and other laws.

Ramesh Patodia
30-03-2023