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/20(Cus)/2005
In
Application No.AAR/44(Cus)/32/2005
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 1640 Dense Wavelength Division
Multiplexer Node to be imported into India, is classifiable under Heading No.
8517 5099 of the First Schedule of the Customs Tariff Act, 1975."
The Alcatel 1640 WM Telecommunication
Equipment (1640 WM) (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. The goods are multi wavelength transmission
system with Software reconfigurable Add and Drop functionality. It can transmit
signals, one pair of fibre, up to 320 channels (160 channels for single fibre)
that can support any type of asynchronous traffic with bit rate from 100 Mb/s to
2,5 Gb/s and synchronous STM-16 and STM-64 traffics. The goods include
standard transponders, optical adapters and concentrators. 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 product
Application 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 systems or
for digital line systems; videophones is correct. The product is an equipment
meant for Telecommunication functions and 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 1640 Dense Wavelength Division Multiplexer 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 |
|