AUTHORITY FOR ADVANCE RULINGS
(CENTRAL EXCISE, CUSTOMS & SERVICE TAX)
NEW DELHI
PRESENT
Justice Syed Mohammed
Quadri
(Chairman) |
Mr. Somnath Pal
(Member) |
Dr. B.A.Agrawal
(Member |
Thursday, the twenty fourth
November Two Thousand Five
Ruling No. AAR/18(Cus)/2005
In
Application No.AAR/44(Cus)/30/2005
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 1660 SMC
Optical Multi-Services Node to be imported into India, is classifiable under
Heading No. 8517 5099 of the First Schedule of the Customs Tariff Act, 1975."
The 1660 SMC Optical
Multi-Service Node Telecommunication equipment (for short "the goods") is a
hybrid of optical, electronic and mechanical systems that forms part of a
telecommunication system for use in transmission of aggregate data. It is an
STM-1/4/16/64 Multi-service Node for transmission and cross-connection of a wide
range of traditional PDH and SDH telecommunication data signals as well as
packed based data flows. It can operate as a Multi Terminal or Add/Drop
Multiplexer and can also be configured as a small Cross-Connect with a matrix
size of up to 384x384 STM-1 equivalent at the High Order VC level and 256x256
STM-1 equivalent at the Low Order VC level. 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. has 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 given in annexure II and General
characteristics given in 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 system or
for digital line system; videophones: is correct.
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 1660 SMC Optical Multi-Service Node is
classifiable under tariff item 8517 50 99.
Pronounced in the open Court on
this 24th day of November, 2005.
Sd/-
(Somnath Pal)
Member |
Sd/-
(Justice S.S.M.Quadri)
Chairman |
Sd/-
(B.A.Agrawal)
Member |
|