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 Nos. AAR/23(Cus)/2005
In
Application No.AAR/44(Cus)/35/2005
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 Alcatel 1641 SX
Multi-Service Metro Gateway to be imported into India, is classifiable under
Heading No. 8517 5099 of the First Schedule of the Customs Tariff Act, 1975."
The Alcatel 1641 SX
multi-service metro gateway is telecommunication equipment (referred to in this
ruling as "the goods"). It is a hybrid of optical, electronic and mechanical
systems for use in transmission of aggregate data. The goods are a wideband
Digital Cross Connect system that provide interfaces to standard line
telecommunication facilities and cross-connects virtual container(s) (in which
telecommunication data is held) complying with ITU-T Recommendation G.707 and
ETSI/SONET requirements. The goods can operate in any mesh, ring or hub
telecommunications topology. They contain the subsystems: (1) Cross Connect
Matrix;(2) Line Interface; (3) Clock Generation and Distribution; and (4)
Control. 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.
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 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 1641 SX Multi Service Metro Gateway 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 |
|