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Issues:
Classification of modules imported by the respondents under Customs Tariff Act, 1975. Analysis: The issue in this case pertains to the classification of modules (Main Switching Centre Hardware Upgrades) imported by the respondents under the Customs Tariff Act, 1975. The original authority classified the goods as 'Parts' under heading 8517.90, while the Revenue contended that the goods should be classified as 'Other apparatus' under heading 8517.80. The Commissioner (Appeals) rejected the Revenue's appeal, emphasizing that for goods to be classified as apparatus, they must have a separate identifiable function on their own. The Deputy Commissioner Customs highlighted that the main switching center is a complete machine with provisions for expansion, and the imported modules are inserted as essential parts to enhance capacity, not having any independent function. Therefore, the modules were correctly classified as 'Parts' under 8517.90 rather than 'Other Apparatus' under 8517.80. The learned advocate for the respondent cited a previous decision where add-on cards and motherboards were classified as parts of machines rather than automatic data processing machines, based on the requirement of being linked with other components for use. Drawing an analogy, it was argued that the impugned goods, being a complete set of PCBs, should also be classified as parts and not as other apparatus. The modules imported were described as meant for various functions related to mobile telephone equipment, such as receiving, transmission, message distribution, and programme execution. Upon reviewing the submissions, it was observed that the Main Switching Center comprised modules in the form of PCBs, each with its own function and standard format. The modules were designed with face plates, display elements, controls, and connectors, with multi-layer PCBs equipped with surface-mounted devices. These modules were inserted as essential parts to achieve a specific capacity within the Main Switching Center, lacking independent functionality and being inseparable from the main machine. Consequently, the Original Authority's classification of the modules as parts rather than apparatus was deemed correct, leading to the rejection of the Revenue's appeal due to lack of merit. In conclusion, the appellate tribunal upheld the classification of the imported modules as 'Parts' under heading 8517.90, in line with the Original Authority's decision, rejecting the Revenue's appeal for classification under 'Other Apparatus' under heading 8517.80.
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