M/S. SECURE METERS LTD. versus COMMISSIONER OF CUSTOMS, NEW DELHI

Citation: [2015] 6 S.C.R. 219 · Decided: 05-05-2015 · Supreme Court of India · Bench: A.K. SIKRI · Disposal: Appeal(s) allowed

Cited by 1 judgment(s) · see the full citation network in Lexace

Judgment (excerpt)

(2015] 6 S.C.R. 219 
M/S. SECURE METERS LTD. 
v. 
COMMISSIONER OF CUSTOMS, NEW DELHI 
(Civil Appeal No.7526 of2004) 
MAY05,2015 
[A. K. SIKRI AND R. F. NARIMAN, JJ.] 
Central Excise Tariff Act, 1985- Chapter 90 Note 2(a) 
A 
B 
- Chapter Heading 9013. 80 and 9028. 90- Classification of c 
Liquid Crystal Display-LCD's under, Chapter Heading 
9013.80 or 9028.90 -Assessee importing LCD's and said 
devices used in electric supply meter - Clearance sought 
under Heading 9013. 80 and claimed assessment at nil rate 
basic duty- However, Revenue's case that it would fall in 
D 
tariff item No. 9028. 90 as that entry specifically includes 
amongst others, electricity supply meters - Held: LCDs 
should not constitute 'articles' provided more specifically in 
other headings - LCDs imported by the appellant did not 
constitute any such 'article' more specifically provided in other E 
headings - Thus, LCDs imported by the appellant were 
classifiable under Chapter Heading 9013. 80 and not under 
9028.90 and the order passed by the authorities below set 
aside - General Rules for the Interpretation of the First 
Schedule-Import Tariff- r. 3(c). 
F 
Allowing the appeal, the Court 
HELD: 1.1 LCDs are specifically provided in tariff 
item 9013. The only condition is that such LCDs should G 
not constitute 'articles' provided more specifically in 
other headings. In the instant case, LCDs imported by 
the appellant did not constitute any such 'article' which 
is more specifically provided in other headings. On the 
contrary, the Revenue wants to include in the same H 
219 
220 
SUPREME COURT REPORTS 
(2015] 6 S.C.R. 
A Chapter, i.e. Chapter 90, though under Entry 9028.90.10 
as "parts and accessories". The only reason for 
including the goods under Chapter Heading 9028 is that 
the LCDs were to be used in the electricity supply meters. 
However, Entry 9028 does not pertain to LCDs but gas, 
B liquid, etc. and includes electricity supply meters as well. 
Note 2(a) stipulates that parts and accessories which are 
goods included in the heading of the Chapter 90, are to 
be classified in their respective headings. Going by the 
plain reading of Note 2(a) it is clear that LCDs, which are 
C goods and are used as parts in the final product 
mentioned in Chapter 90, namely, electricity supply 
meters, are to be classified in its respective heading. 
Respective heading, which is specifically provided, is 
0 
9013. Note 2(b) relates to 'other parts and accessories', 
namely, it would apply to those parts and accessories 
for which Note 2(a) is inapplicable. In the instant case 
Note 2(a) squarely applies, the irresistible conclusion is 
that the goods will be classified in tariff item 9013, which 
E is the specific heading for these goods. [Para 15, 16] 
[233-D-G; 234-A-B, D-E] 
1.2 Part Ill of the Chapter Notes to chapter 90 
contains a general explanation to Chapter Note 2 and 
F mentions that where parts or accessories identifiable 
as suitable for use solely or principally with the 
machines, appliances, etc., they are to be classified with 
those machines/ap.pliances. However, what is important 
is that immediately thereafter it is clarified that this 
G general rule would not apply in certain circumstances. 
Sub-para takes things beyond the pale of any doubt by 
making it crystal clear that those parts and accessories 
which in themselves constitute 'article' falling in any 
particular heading of this Chapter, the general rule will 
H not apply and said article would fall in that particular 
M/S SECURE METERS LTD. v. COMMISSIONER OF 
221 
CUSTOMS, NEW DELHI 
heading. As per Explanatory Notes issued by the World A 
Customs Organization, Volume 4 Second Edn (1996), 
covering Chapters 85-97, LCD would be covered by 
'other devices' mentioned in 9013.80, which is precisely 
the case of the appellant. Thus, the view taken by the 
tribunal in the impugned judgment is unsustainable in B 
law. The order passed by the authorities below is set 
aside and the LCD imported by the appellant were 
classifiable under Chapter Heading 9013.80. [Para 19, 
20, 21] (236-E-H; 238-8-D] 
CCE, Bombay v. Universal Information Commn. 
Equipment Ltd. 1997 (94) ELT 543; Commissioner of 
Central Excise, Nagpur v. Simplex Mills Co. Ltd. 2005 
(2) SCR 441 : (2005) 3 SCC 51; Collector of Central 
c 
Excise v. Delton Cables Ltd. & Anr. (2005) 12 SCC 284 
D 
- referred to. 
Bloomsbury Dictionary of 'Science· for Everyone' 
- referred to. 
Case Law Reference 
1997 (94) EL

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