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29. Therefore, the phrase „display assembly‟, in absence of its specific definition in the statute, has to be construed accordingly. Further, the intent behind the subject notification can be better understood in terms of response dated 17.12.2019 from MEITY (the principal agency behind Phased Manufacturing Programme) which read as:

"...... After detailed deliberations, the committee was of opinion that the representative sealed sample provided by O/o the Principal Commissioner of Customs (Import) is an assembly, inter-alia, containing aforementioned parts/sub-assemblies of mobile phones and cannot be considered a „Display Assembly‟ only as covered under the PMP notified by MEITY......"

(emphasis supplied)

15. The Commissioners (Appeals) recorded the following findings in the order dated 23.12.2021 that has been impugned in Customs Appeal No. 51162 of 2022:

"5.4 The Appellant is strongly contending that reference to Phased Manufacturing Programme Notification and opinion of MEITY is misplaced as notification under dispute and the PMP Notification are mutually exclusive and distinct notifications issued by different branches of the Central Government. However, this contention is totally misconceived. As analysed by the Adjudicating Authority in paragraphs 24 to 28, the impugned customs notification 57/2017-Cus had been issued to implement the Phased Manufacturing Progamme and thus the two are closely interlinked. As can be seen from the chart under para 27, various amendments in notification 57/2017-Cus closely follow timelines of PMP Notification. Thus neither can PMP notification nor the MEITY opinion be brushed aside and they need to be read together to arrive at a conclusion in this case.

(vii) The Commissioner (Appeals) erred in relying on the intent PMP Notification and the opinion of MEITY, to deny the benefit under Serial No. 6(a)(iv) of the Exemption Notification;

(viii) MEITY Report relied upon in the impugned order was never provided to the appellant; and

(ix) No interest is chargeable under section 18(3) of the Customs Act.

17. Customs Appeal No. 52428 of 2019 decided on 12.09.2022

C/51162/2022 & 25 others

(vii) The opinion given by MEITY on 17.12.2019 cannot be brushed aside lightly, as MEITY is an expert body and the nodal agency responsible for the PMP; and

(viii) The terms „Display Unit‟ and „Display Assembly‟ have two distinct meanings. „Display Assembly‟ is a narrower term that refers to the core display component. „Display Unit‟, on the other hand, is a broader and more comprehensive term. Thus, „Display Assembly‟ is a sub-set of a „Display Unit‟.