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/21(Cus)/2005
In
Application No.AAR/44(Cus)/33/2005
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 1686 WM Wavelength Division
Multiplexing Telecommunication equipment to be imported into India, is
classifiable under Heading No. 8517 5099 of the First Schedule of the Customs
Tariff Act, 1975."
The Alcatel 1686 WM Wavelength
Division Multiplexing Telecommunication Equipment is a hybrid of optical,
electronic and mechanical systems that forms part of a telecommunication system
for use in transmission of aggregate data (referred to in this ruling as "the
goods"). The goods function by combining on the same fibre different
telecommunication signal wavelengths each transmitting a different channel. It
achieves this function within a telecommunication system over a range of
distances in both the terrestrial and submerged environment working with, for
example, the following telecommunication equipment to achieve distance and
capacity:-
(i)
Multiplexers
(ii)
De-Multiplexers
(iii)
Optical Amplifiers
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. classified the 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 Technical document
and product application given there in 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 systems; videophones is correct. The product has application
in Telecommunication 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 |
|
|
|
The description of the goods and the
technical information make it clear that the goods are more than a mere
multiplexer and that they are combination of above mentioned three
telecommunication equipments.
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 1686
WM Wavelength Division Multiplexing Telecommunication equipment 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 |
|