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/19(Cus)/2005
In
Application No.AAR/44(Cus)/31/2005
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 1650 SMC
Optical Multi-Service Node to be imported into India, is classifiable under
Heading No. 8517 5099 of the First Schedule of the Customs Tariff Act, 1975."
The 1650 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 Network Element for transmission and cross-connection of a wide range
of PDH and SDH telecommunication data signals. It can operate as a Multi
Terminal or as a Cross Connect with up to 28xSTM-1 equivalent ports capacity.
The matrix size is 32x32 ST STM-1 equivalent at the High Order and 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 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,
mentioned above, we rule that Alcatel 1650 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 |
|