2006 (11) TMI 467 - AT - Customs

Summary

Issues:
1. Whether the imported microwave communication equipments were eligible for concessional rates of duties under Notification No. 20/99-Cus.
2. Whether the goods imported fell under Entry No. 5 of List No. 29 appended to Sl. No. 175 of the Table annexed to the Notification.

Analysis:
1. The case involved the import of microwave communication equipments by the department, claiming concessional rates of duties under Notification No. 20/99-Cus. The goods were provisionally assessed and cleared on payment of duty. Subsequently, Customs authorities proposed finalizing assessments without extending the benefit of the Notification, leading to a demand for differential duty. The Deputy Commissioner rejected the claims, resulting in an appeal. The Commissioner (Appeals) allowed the benefit of concessional rates of duties to the importer, leading to the present appeal.

2. The main dispute centered around whether the imported equipments could be considered as 'BTS ancillary equipment' specified at Entry No. 5 of List 29. After reviewing the manufacturer's literature on the product, the Tribunal found that the equipment was intended for providing connectivity between Base Transceiver Stations (BTS) of cellular communications systems. The literature confirmed the product's role in routing calls between BTS and Base Station Controller (BSC). The Tribunal accepted the authenticity of the literature and upheld the findings of the appellate Commissioner.

3. Referring to a previous judgment in the case of Spice Telecom, where radio terminals were considered ancillary equipments for BTS, the Tribunal concluded that the imported items in this case also qualified as BTS ancillary equipments. The Tribunal highlighted the importance of radio terminals for interconnectivity within cellular telephony systems. Based on the technical literature, it was established that without the radio terminals, interconnectivity between BTS and other components would not be possible. Therefore, the Tribunal dismissed the appeal and sustained the impugned order.

In conclusion, the Tribunal upheld the decision of the appellate Commissioner, considering the imported microwave communication equipments as BTS ancillary equipment eligible for concessional rates of duties under the relevant Notification. The judgment referenced previous cases to support the findings and dismissed the appeal accordingly.