Case nº Ruling Nos. AAR/24(Cus)/2005 in Application No. AAR/44(Cus)/36/2005 of Authority for Advance Rulings, November 24, 2005 (case Alcatel India Ltd. Vs Commissioner of Customs)
|Judge:||For Respondents: A.K. Roy, Joint CDR CESTAT|
|President:||Syed Shah Mohammed Quadri, J. (Chairman), Somnath Pal and B.A. Agrawal, Members|
|Defense:||Customs Act, 1962 - Section 28H; Customs Tariff Act, 1975 - Schedule - Rules 1 and 6; Customs Tariff Rules - Rules 1 and 6|
|Resolution Date:||November 24, 2005|
(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 telecommunication systems, it seeks advance ruling of the Authority on the following question:
"Whether Alcatel 1640 Fox 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 1640 Fox (referred to in this ruling as "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 STM-1/4 Network Element for transmission and cross connection of a wide range of PDH and SDH telecommunication signals. They have the capacity to perform functions of a multi-terminal (receiving a variety of signals at differing protocols) or as Add/Drop Multiplexer (selecting and isolating differing signals). They are very compact shelves that are able to handle wide variety of traffic signals such as 2Mbit/s, 34Mbit/s and 155 Mbit/s over both electrical and optical (transmission) medium. They are also able to manage data traffic as well, such as Ethernet and GB Ethernet. 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.
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...
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