Classification of LCD Panel- Supreme Court Ruling – Chapter Notes Override Principal Use Clause

Last week Hon’ble SC has passed an important judgment on the above captioned subject in the case of CCE Vs Videocon Electronics Limited….which is directly or indirectly related “Display Assembly” classification.

Ruling: The Supreme Court held that since note 1(m) to Section XVI excludes goods falling under chapter 90, test of sole and principal use cannot be relied upon to decide classification of LCD in Chapter 85. This view further finds support from note 2 which starts with expression ‘subject to note 1’.

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