AUTHORITY FOR ADVANCE RULINGS
(CENTRAL EXCISE, CUSTOMS & SERVICE TAX),
NEW
DELHI
PRESENT
Hon'ble
Mr.Justice Syed Shah Mohammed Quadri (Chairman)
Mr.Somnath Pal (Member)
Dr.B.A.Agrawal (Member)
Thursday,
the twenty fourth November
Two Thousand Five
Ruling
No. AAR/29(Cus)/2005
In
Application No.AAR/44(Cus)/54/2005
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 |
None
|
for
the Commissioner
designated |
Shri
A.K. Roy, Joint CDR
CESTAT,
New Delhi |
R U L I N G
(Hon'ble
Mr. Justice Syed Shah Mohammed Quadri)
In
this application under section 28H of the Customs Act, 1962 (for short "the
Act"), M/s. Alcatel India Limited, a wholly owned subsidiary of Alcatel,
France, proposes to import into India the latest technology equipment of Optical
Networking/GSM equipment etc. To
ascertain its customs duty liability in regard to the hardware and optical fibre
cables for submarine telecommunications systems, it seeks advance ruling of the
Authority on the following question:
"Whether
the Alcatel Single Wavelength Transponder to be imported into India, is
classifiable under Heading No. 8517 5099 of the First Schedule of the Customs
Tariff Act, 1975."
The
Alcatel Single Wavelength Transponder for Submarine Unrepeatered Systems (for
short "the goods") is a hybrid of optical, electronic and mechanical system
that forms part of a submarine telecommunication system for use in transmission
of aggregate data. The goods is of generic design and includes features that
allow the configuration of the FFU
to suit a given system. The
goods are intended for use in long haul unrepeatered submarine cable systems
linking networks carrying telecommunications data.
For transmission over the submerged cable section, the transponder
includes a Forward-Error Correction (FEC) code.
This has the benefit that transmission errors, which arise in the
submerged system, can be detected and corrected at the receiving terminal. The
principal functions of the goods are to manage and achieve efficient data
transmission integrity through the submarine telecommunications optical fibre
cable, to transmit one optical signal through the submarine cable (optical fibre),
to receive this signal, decode it through a Forward Error Correcting algorithm
and pass it to other land based telecommunication systems.
It is submitted that in accordance with Rule 1 of the General Rules for
the Interpretation of the First Schedule to the Customs Tariff Act 1975 (for
short "the Rules") the said goods are classifiable under Tariff heading
8517; in accordance with Rule 6,
these goods will fall under sub-heading 8517 50 and that the appropriate tariff
heading is 8517 50 99. It is added that the U.K., the USA and Australia have
classified the said goods under tariff heading 8517 50.
2.
In his comments the designated Commissioner of Customs states as follows:
"Comments:
On the basis of description of goods and functions given in annexure II and
Technical documents, it appears that the party's contention that in accordance
with Rule 1 of the General Rule of interpretation, these goods are classified
under tariff heading 8517 Electrical apparatus for line telephony or line
telegraphy, including line telephone sets with cordless handsets and
telecommunication apparatus for carrier - current line systems or for digital
line systems; videophones is correct.
The equipment has application in managing and achieving efficient data
transaction interpreting through Telecommunication cables, it merits
classification under Tariff heading 85175099 of the First Schedule.
Conclusion:
In view of above, proposed classification of item under tariff heading 8517 5099
may be accepted."
3.
It is evident that the proposed classification by the applicant is
accepted by the Commissioner of Customs.
4.
Tariff heading 8517 , the relevant sub-heading and the tariff items read
as follows:
TARIFF
HEADING 8517
Tariff
Item
|
Description
of goods
|
8517
|
Electrical
apparatus for line telephony or line telegraphy, including line telephone
sets with cordless hand-sets and telecommunication apparatus for
carrier-current line systems or for digital line systems; video-phones
|
Heading
8517 deals with electrical apparatus for line telephony or line telegraphy
including line telephone sets with cordless hands-sets and telecommunication
apparatus for carrier-current line systems or for digital line systems.
SUB-HEADING
AND TARIFF ITEMS
Tariff Item |
Description of goods
|
Unit |
Rate of duty
|
|
Standard |
Preferential Areas |
(1) |
(2) |
(3) |
(4) |
(5) |
8517
50
|
Other apparatus, for carrier-current line systems or for
digital line systems:
|
|
|
|
8517
50 10
|
PLCC
equipment
|
u
|
Free
|
-
|
8517
50 20
|
Voice
frequency telegraphy
|
u
|
Free
|
-
|
8517
50 30
|
Modems
(modulators-demodulators)
|
u
|
Free
|
-
|
8517
50 40
|
High
bit rate digital subscriber line system (HDSL)
|
u
|
Free
|
-
|
8517
50 50
|
Digital
loop carrier system (DLC)
|
u
|
Free
|
-
|
8517
50 60
|
Synchronous
digital hierarchy system (SDH)
|
u
|
Free
|
-
|
8517
50 70
|
Multiplexer,
statistical multiplexer
|
u
|
Free
|
-
|
|
Other:
|
|
|
|
8517
50 91
|
ISDN
terminals
|
u
|
Free
|
-
|
8517
50 92
|
ISDN
terminal adapters
|
u
|
Free
|
-
|
8517
50 93
|
Routers
|
u
|
Free
|
-
|
8517
50 94
|
X25
pads
|
u
|
Free
|
-
|
8517
50 99
|
Other
|
|
|
|
On
a combined reading of Rules 1 and 6 of the
Rules and the terms of the heading, sub-heading and tariff items, having
regard to the description of the goods, given above, we rule that Alcatel Single
Wavelength Transponder is classifiable under tariff item 8517 50 99.
Pronounced
in the open Court on this 24th day of November, 2005.
Sd/-
Sd/-
Sd/-
(Somnath
Pal)
(Justice S.S.M.Quadri)
(B.A.Agrawal)
Member
Chairman
Member
|