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Issues: Classification of imported waveguides under Customs Tariff Heading (CTH) 852990 or CTH 854420.
Analysis: 1. The case involved the classification of imported waveguides by M/s. Srinivas Cellcom Ltd. (SCL) under CTH 852990 or CTH 854420. The original authority revised the classification to CTH 854420 and demanded the exemption allowed under Notification No. 20/99-Cus., dated 28-2-99. The Commissioner (Appeals) upheld this decision based on the precedent set by the Tribunal in the case of Scientific Instruments Co. Ltd. v. Commissioner, where waveguides were classified as cables of CTH 854420. 2. The appellants argued that the Commissioner (Appeals) relied on a Tribunal order with no precedential value and that the Tribunal had wrongly applied Rule 4 of the Interpretative Rules. SCL cited the Tribunal's decision in CC, Customs v. ITI Ltd., where waveguides were classified under CTH 852990 based on technical advice from the Department of Telecommunications. The Tribunal upheld this classification as waveguides being a part of the microwave system, similar to a passive micro-wave component. 3. In the Scientific Instruments case (97 decision), the Tribunal classified waveguides under CTH 854420 as they were not considered part of radiotelephony equipment but rather a component of the microwave system. The Tribunal rejected the classification under CTH 852990, considering waveguides as cables of CTH 854420, similar to coaxial cables. 4. The ld. SDR supported the impugned order based on the Tribunal's decision in the Scientific Instruments Ltd. case (97 decision) upheld by the Apex Court. The Tribunal upheld the classification of waveguides as cables of CTH 854420, and the ld. SDR defended the Commissioner (Appeals) order. 5. The Tribunal considered the arguments presented by SCL, highlighting the reliance on technical opinions from the Department of Telecommunications in previous cases. However, the Tribunal noted the absence of such opinions in the present case and questioned SCL's explanation on the classification under CTH 852990 without following the Interpretative Rules properly. 6. The Tribunal referred to the classification opinions of the World Customs Organization and previous decisions where waveguides were classified under CTH 854420. The issue at hand was whether waveguides should be considered part of radiotelephony equipment or cables conveying electromagnetic signals as part of the microwave system. The Tribunal found that the goods formed a sub-system of the radio microwave system, supporting the classification under CTH 854420. 7. In a previous decision, the Tribunal classified waveguides connecting distant towns for telephonic communication as cables of CTH 854420, not part of any radiotelephony apparatus. These cables were essential for establishing telecommunication routes between towns, conveying signals to antennae at both ends of the communication. 8. Ultimately, the Tribunal dismissed the appeal, stating that there was no justification to deviate from the classification held in previous decisions. The case was decided in favor of classifying the imported waveguides under CTH 854420 as cables, in line with the established precedents. (Order pronounced in Open Court on 22-10-2008)
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