|
AUTHORITY FOR ADVANCE RULINGS
(CENTRAL EXCISE, CUSTOMS & SERVICE TAX)
NEW DELHI
PRESENT
Hon'ble Mr.Justice Syed Shah Mohammad
Quadri (Chairman)
Mr.Somnath Pal (Member)
Dr.B.A.Agrawal (Member)
Ruling No. AAR/01(Cus)/2006
In
Application No.AAR/44/23(Cus)/2005
Applicant
|
M/s
Alcatel India Ltd.
Plot
No. 25, Sector 18
Gurgaon-122015
Haryana,
India |
Commissioner
designated |
Commissioner
of Customs,
Air
Cargo Complex
New
Custom House
New
Delhi-110037 |
Present
: for the applicant |
Mr.
Charles A. Barber
Director
(Customs & Supply Chain)
Alcatel,
London, UK
Mr.
Steve Gaikwad
Client
Partner, Vantis Custom House
London,
UK |
For
the Commissioner
designated |
Mr.
A.K. Roy,
Joint
CDR,
CESTAT,
New Delhi |
R U L I N G
( By Mr. Somnath Pal, Member )
In
this application the following question has been posed by the applicant under section
28H of the Customs Act, 1962 for an advance ruling:-
"Whether
Remote Optically pumped Amplifier Jointing Box Housing proposed to be imported
into India, is classifiable under Heading No. 8517 50 99 of the First Schedule
of the Customs Tariff Act, 1975" .
2.
In the Annexure-II to the application and in the Customs Technical
Document submitted by the applicant, it has been stated that the goods in
question are for use with telecommunications systems utilizing submerged
equipment. The Joint Box Housing is
designed to allow laying, recovery and re-laying in a submerged environment with
no degradation in mechanical, optical and electrical performance. This Housing can terminate all lightweight and armoured cable
designs, with load transfer through a flexible coupling.
It has been further stated that the Alcatel submerged remote optical
pumped amplifier (ROPA) is a hybrid of optical, electronic and mechanical
systems that forms part of a submerged telecommunication system for use in
transmission of aggregate data. The
ROPA is of an Alcatel generic design and includes features that allow the
configuration of the ROPA to suit a given system.
ROPA is inserted into an un-repeatered telecommunication system to
maximise the operating distance across which the telecommunication cable can
function without the need for submerged repeater units.
The ROPA is placed close to the receiving terminal to optimize through
pre-amplification the aggregate data signal ahead of the receiver in the
terminal station. The underwater
jointing box housing and cable terminating arrangements can accommodate
amplifier modules up to eight traffic-carrying fibre pairs, and are compatible
with all types of Alcatel cable. The
internal assembly of the Housing includes a tray assembly housing Erbium doped
fibes, isolators and excess fibre length as necessary to realize the connections
to the line cable. In addition,
provision can be made to ensure additional "by-pass" fibre storage. Transmission (optical amplification) is provided by a single
mode fibre, the core of which is doped with erbium.
As the aggregate data signal propagates through the erbium-doped fibre,
amplification is optimized prior to arrival at the receiving terminal.
The ROPA amplifier module consists of a length of erbium-doped fibre, and
an isolator that is necessary to prevent potential self oscillation from optical
feedback. In use, optical pump power is transmitted from the terminal
along the cable signal path to pump the erbium-doped fibre in a counter
direction to the traffic signal.
3.
The Commissioner in his initial comments contended that the Alcatel
Remote Optically pumped Amplifier Jointing Box Housing is an amplifier having an
independent function. It is not
covered more specifically by a heading of any other Chapter of the nomenclature,
not excluded by the operation of a legal note to section XVI or to Chapter 85
and accordingly the goods in question merit classification under tariff heading
8543 89 79 as high or intermediate frequency amplifiers as mentioned at Sl. No.
9 of the items included in the heading as stated in Explanatory Notes, volume 4,
section XVI-XXI, Chapter 85-97 (page 1519).
The Commissioner had also referred to Rule 3(c) of the General Rules for
the Interpretation of First Schedule to further support his stand that the
tariff heading 8543 will be more appropriate classification than tariff heading
8517 since it occurs later in numerical order even in case it is found that they
equally merit consideration.
4.
In the hearing before us the Learned Representatives of the applicant reiterated
their stand that the goods in question are part of a submerged telecommunication
system and though its basic function is optical amplification, it is not
comparable with types of amplifiers which are covered under tariff heading 8543.
Reliance was placed on Rule 1 of the General Interpretative Rules which,
they contended, is quite clear to decide the classification and there is no need
to go to Rule 3 as stated by the Commissioner. The ROPA jointing box
housing - item in question - contain other components as well like
isolators, excess fibre length and also has the provision to ensure additional
by-pass fibre storage. It cannot therefore be equated in any case with an
electrical apparatus "having individual functions, not specified or included
elsewhere" in Chapter 85 of the Customs Tariff Act 1975 to merit
classification under tariff heading 8543. It is more appropriately covered
under tariff heading 8517 as an apparatus for carrier-current line systems or
for digital line systems, they submitted.
5.
The Learned Joint CDR representing the Commissioner conceded during the hearing
that having regard to the technical information furnished by the applicant and
as further elaborated and explained by their representatives, the goods in
question would more appropriately fall under tariff item 8517 50 99. He
also cited in this context the recent rulings of the Authority given in the
applicant's case in regard to classification of 'Equalisers' and
'Repeaters' which have been held to be falling under tariff heading 8517 50
99.
6.
Having carefully considered the nature and the function of the goods in question
as could be seen from the technical information furnished by the applicant and
as further explained by them before us, we are satisfied that they are more
appropriately classifiable as an apparatus for carrier-current line systems or
for digital line systems falling under tariff heading 8517. We have
already examined the scope of the tariff heading 8543 in details in our Ruling
No. AAR/14(Cus)/2005 dated 24.11.2005 in the applicant's case on the question
of classification of submerged repeaters, including the HSN Explanatory Note to
heading 85.17 indicating the coverage of the category "other apparatus, for
carrier-current line systems or for digital line systems". In our view,
the tariff heading 8543 will not cover the product under consideration. In
their final submission the Ld. Joint CDR representing the Commissioner has also
agreed that the proper classification would be 8517 50 99 and not 8543 89 79 as
originally contended.
7.
In view of the above, we rule on the question raised in this application that
'Remote Optically pumped Amplifier Jointing Box Housing' is classifiable
under tariff item 8517 50 99 of the First Schedule of the Customs Tariff Act,
1975.
Pronounced
in the open Court of the Authority on this 5th day of January, 2006.
Sd/-
Sd/-
Sd/-
(B.A.Agrawal) (Justice
S.S.M.Quadri)
(Somnath
Pal)
Member
Chairman
Member
|