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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/02(Cus)/2006
In
Application No.AAR/44/22(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 )
The
applicant in this application has posed the following question seeking an
advance ruling thereon :-
"Whether
Optically Post Amplifier unit (unrepeatered) 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.
As per the description of the goods in question given in the Annexure-II
to the application, the Alcatel Optical Post-Amplifier (OPA28C) can be installed
in the Alcatel URW subrack telecommunication equipment when there is a
requirement for high power amplification of the transmitted WDM (Wavelength
Division Multiplexing) communication signal before it is launched into the
submarine telecommunication cable. The
OPA28C can deliver up to +28dBm aggregate power into the submarine line. It is a hybrid of optical, electronic and mechanical systems
that forms part of a submarine telecommunication system for use in
transmission of aggregate data. The
WDM telecommunication signal from the terminal is amplified in the Alcatel
OPA28C by an Erbium-doped Fibre Amplifier (EDFA), which uses a pump laser to
give an aggregate output power to line of up to +28dBm.
Though the function of the product is to amplify the signal it is still
however part of the submerged telecommunication system as it is basically
boosting the signal to ensure there is no distortion or impurities in the
signal. In the Customs Technical
Document relating to this product it has been further explained that the OPA28C
is of an Alcatel generic design and includes features that allow the
configuration of this equipment to suit a given system.
All transmission connections are made by removable SC/APC type
connectors, except the fibre to the sea cable.
This is spliced directly to the submarine line to ensure satisfactory
transmission of the high power signal. It
has been further submitted that this equipment functions as a dedicated unit for
the transmission of aggregate data. During
the hearing before us the Ld. Representatives of the applicant, while
reiterating the above technical information, drew our attention to the block
diagram of this equipment as given in the Customs Technical Document to show
that this equipment houses many other components besides the EDFA, like
detector, input monitor, output monitor and shutdown logic.
It was contended by them that the equipment in question is not covered by
tariff heading 8543 which applies to electrical apparatus having
individual function not elsewhere specified in Chapter 85.
According to the applicant, it is more appropriately classifiable under
heading 8517 as an apparatus for carrier-current line systems or for digital
line systems. Rule1 of the General
Rules for the Interpretation of First Schedule of the Customs Tariff Act, 1975
is enough for deciding the classification and there is no need to go to Rule 3
(c) as contended by the Commissioner. Reference
was also made to the Information Technology Agreement Schedule from India to WTO
which indicates that amplifiers used in telecommunications are classified under
heading 8517.
3.
Though in his initial comments the Commissioner had submitted that this product
being an amplifier and having an independent function would fall under tariff
item 8543 89 79 as high or intermediate frequency amplifier, the Learned Joint
CDR representing the Commissioner, however, conceded during the hearing before
us that having regard to the technical information furnished by the applicant 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.
4.
Having regard to the technical details and the functional parameters of the
apparatus as explained by the applicant, in writing as well as during the
hearing, we find that it is indeed a combination of optical, electronic and
mechanical elements and the function of amplification is an integral and
inseparable part in the overall operation of this product. Its various
component parts and their functions as depicted in the block diagram and as
narrated in the technical write up, clearly show that all these parts put
together contribute to the function of transmission of data as a
telecommunication apparatus for carrier-current line systems or for digital line
systems falling under heading 8517. In our earlier Ruling No. AAR/14(Cus)/2005
dated 24.11.2005, we have examined in detail the scope of the heading 8543 and
also referred to the HSN Explanatory Note to heading 8517. We are
satisfied that the apparatus under consideration is more appropriately covered
by heading 8517 rather than by heading 8543. In his final comments, the
Ld. Joint CDR representing the Commissioner has also taken this stand.
Keeping in view the tariff layout of the sub-heading 8517 50, it is apparent
that the goods in question would fall under tariff item 8517 50 99.
5.
For the reasons given above, we rule on the question raised in this application
that the Optical Post-Amplifier Unit (unrepeatered) 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
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