|
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/25(Cus)/2005
In
Application No.AAR/44(Cus)/37/2005
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 1678 Metro Core Connect
proposed to be imported into India, is classifiable under Heading No. 8517 5099
of the First Schedule of the Customs Tariff Act, 1975."
The Alcatel 1678 Metro Core Connect
(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 intelligent transmission optical multi-band node
(ION) with an unique density of 4096 STM1 equivalent/640G within one single
shelf. Because of the innovative architecture, both network applications of SDH/SONET
are supported: broadband (VC-4nc/VC-4 or VC3nc/VC3) and wideband (VC3/12 or
VT2/VT.15) with modular building blocks. Intelligent optical networks are
supported, with Gigabit Ethernet, ASON/GMPLS and flexible, transparent OTN
(G.709) switch. It integrates L2 Ethernet and MPLS functionalities as well. All
kind of broadband (STM-1/4/16/64, GE, 10GE), wideband (E1, E3, STM1, E/FE) and
Optical G. 709 (OTM1, OTM2, colored) interfaces are integrated with a family
concept to support traditional TDM, data aware, long haul SAN and Transparent
services. The goods can operate in any mesh, ring, restoration or hub and spoke
telecommunication topology, because of their superior blocking free
cross-connect architecture. 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 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, specified above, we rule
that Alcatel 1678 Metro Core Connect 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 |
|