Case nº Ruling No. AAR/21(Cus)/2005 in Application No. AAR/44(Cus)/33/2005 of Authority for Advance Rulings, November 24, 2005 (case Alcatel India Ltd. Vs Commissioner of Customs)

JudgeFor Respondents: A.K. Roy, Joint CDR CESTAT
PresidentSyed Shah Mohammed Quadri, J. (Chairman), Somnath Pal and B.A. Agrawal, Members
Resolution DateNovember 24, 2005

Judgment:

(Central Excise, Customs and Service Tax)

Syed Shah Mohammed Quadri, J. (Chairman)

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.

  1. 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...

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