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  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