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 Nos. AAR/03&04(Cus)/2006
In
Application No.AAR/44/21(Cus)/2005
Application No.AAR/44/19(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
The following two applications filed by the applicant are clubbed for
issuing the advance ruling since they both relate to Pump Units (unrepeatered)
:-
(a) Application
No. AAR/44/21(Cus)/2005 raising the question - "Whether Remote Pump (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".
(b) Application
No. AAR/44/19(Cus)/2005 raising the question
- "Whether Raman Pump 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 technical information furnished by the applicant these Pump
Units are a hybrid of optical, electronic and mechanical systems that forms part of a submarine telecommunication system for
use in transmission of aggregate data. They
are/can be installed in the Alcatel URW telecommunications subrack when there is
a requirement for amplification of the telecommunication signal.
These pump units are of an Alcatel generic design and include features
that allow the configuration of the pump units to suit a given system.
The Remote Pump Unit can be used standalone for single channel
applications (e.g. with Alcatel 1666 UT transponder), or for WDM applications in
the Red-C band (up to 32 channels) and full-C band (up to 80 channels).
The Alcatel Raman Pump Unit can be used independently for single channel
application or with other Alcatel Raman Pump Units/Telecommunication Equipment
for WDM telecommunication applications in the full-C band (up to 80 channels).
During the hearing the Ld. Representatives of the applicant referred to
the block diagrams of these pump
units as given in the Customs Technical Document and clarified that though they
are used in the telecommunication system when there is requirement of
amplification of a traffic signal, they are not 'amplifiers' as understood
for the purpose of tariff heading 8543. Besides
the optical 'pump' per se, these units also house other components like
filter, detectors and shutdown logic. The
Raman Pump Unit (RNP1425C) contain, in addition, splice and a combiner. Alcatel pump units function as dedicated unit for the transmission of
aggregate data. Relying on the
Rule1 of the General Rules for Interpretation of the First Schedule of the
Customs Tariff Act, 1975, it was submitted that the goods in question are
undoubtedly classifiable under the tariff item 8517 50 99 and that being so,
there is no need to go to Rule 3(c) as an alternative option as contended by the
Commissioner. The applicant also
referred to the Information Technology Agreement (ITA) Schedule from India to
WTO according to which amplifiers used in telecommunications are classified
under heading 8517.
3.
Though in his initial comments the Commissioner had taken the stand that
these pump units are more appropriately classifiable under tariff item 8543 89
79 as high or intermediate frequency amplifiers, the Learned Joint CDR
representing the Commissioner, however, conceded during the hearing that having
regard to the technical information furnished by the applicant and further
elaborated and explained by their representatives, the goods in question would
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.
We have carefully examined the nature and function of the two pump units
under consideration in the light of the technical details furnished by the
applicant in writing as well as the verbal submissions during the hearing.
We are satisfied that these pump units cannot come within the coverage of
tariff heading 8543 whose scope we have already examined in detail in our
earlier Ruling No. AAR/14(Cus)/2005 dated 24.11.2005
in the applicant's case. Having
regard to the functional characteristics of the two pump units we are of the
view that they are a combination of optical, electronic and mechanical elements
and their function is an integral part of the telecommunication system for
transmission of aggregate data. Being
so, they merit classification as an apparatus for carrier-current line systems
or for digital line systems falling under tariff heading 8517. In his final comments, the
Ld. Joint CDR representing the Commissioner has also taken this stand.
Keeping in view the tariff structure under the relevant sub-heading 8517
50, it is apparent that the goods in question would fall under tariff item 8517
50 99.
5.
In view of the above, we rule on the questions raised in these two
applications that the Remote Pump (unrepeatered) and the Raman Pump Unit (unrepeatered)
are 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
|