2002 (12) TMI 310 - AT - Customs

Summary

Issues:
Classification of Optical Fibre Amplifiers imported by M/s. Fibcom India Ltd. under sub-heading 8517.90 or Heading 85.43 of the Customs Tariff Act.

Analysis:
The appeal filed by the Revenue questioned the classification of Optical Fibre Amplifiers imported by M/s. Fibcom India Ltd. The Deputy Commissioner classified the goods under Heading 85.43 based on technical catalog information, while the Commissioner (Appeals) classified them under sub-heading 8517.90. The Revenue argued that optical fibre amplifiers should be classified under Heading 85.43 as per the Explanatory Notes of HSN, which cover high or intermediate frequency amplifiers. They contended that the amplifier's primary function determines its classification, not its use with Multiplexer equipment. The Revenue cited previous tribunal decisions to support their argument.

In response, the Advocate for the Respondents emphasized that optical fibre amplifiers are integral to DWDM equipment and are used for optical amplification of multiplexed signals. They argued that as per the Explanatory Notes, the impugned product falls under sub-heading 8517.90, which covers apparatus for Carrier-Current Line Systems for digital line systems. They contended that Heading 85.43 is a residual heading for electrical machines with unspecified functions, not applicable to the specific function of the impugned goods.

The Tribunal analyzed the submissions from both sides and referred to the Explanatory Notes of HSN to determine the correct classification. Heading 85.43 was found to cover electrical machines with individual functions not specified elsewhere in Chapter 85, including high or intermediate frequency amplifiers. However, the Commissioner (Appeals) found that optical fibre amplifiers primarily operate in the optical domain, distinguishing them from electronic amplifiers. The Tribunal noted that the impugned goods are integral to DWDM equipment, supporting their classification under sub-heading 8517.90 as part of Carrier-Current Line Systems for optical fibre cables. The Tribunal upheld the Commissioner (Appeals) decision, rejecting the Revenue's appeal and confirming the classification under sub-heading 8517.90.

In conclusion, the Tribunal's decision clarified the classification of Optical Fibre Amplifiers imported by M/s. Fibcom India Ltd., emphasizing the specific function and operational domain of the amplifiers to determine their appropriate classification under the Customs Tariff Act.