9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (10) TMI 1316 - AAR - CustomsClassification of goods - networking devices, namely ODU 1, ODU 2, and IDU - two passive antennas - PoE Injector and the two adaptors - Eligibility for benefit of Sr. No. 5 of Notification No. 57/2017-Cus., dated 30.06.2017 and Sr. No. 4 of Notification No. 25/2005-Cus., dated 01.03.2005 - HELD THAT - From the description of the three network devices, ODU 1, ODU 2, and IDU, as submitted by the applicant, it is clear that they do not transmit radio/video broadcast signals. On the contrary, their function is to extract the content from the hard disk drive or Amazon cloud/internet as per the demand of the user. Therefore, it is clear that the heading 8525 is not an appropriate classification for the network devices in question. The six-digit entry, 851762, which includes Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus' is a specific entry which satisfactorily encompasses the functions of the three networking devices under consideration. Passive antennas - HELD THAT - Keeping in view the functionality, there doesn't appear to be significant difference between the two antennas involved in the present proceedings vis-a-vis the antenna for base stations in the case of Reliance Jio Infocom. In view of the aforementioned line of reasoning, I am inclined to concur with the views of the applicant w.r.t. the issue of classification of the Antenna 1 and Antenna 2 and not inclined to accept the views of the jurisdictional Commissioners of Customs - the views of the Commissioner of Customs, ACC, Mumbai is influenced by the Board's instructions, which was discussed in detail in the Reliance Jio Infocom case and did not find favour. Besides, the views of the Commissioner of Customs, ACC, Mumbai do not take into account the change in the tariff w.e.f. 01.01.2022, which appears to be in compliance of the recommendations of the HS Committee of the WCO. Since, I am inclined to hold the classification of antennas under heading 8517, specifically under sub-heading 85177090, the suggestion of the Commissioner of Customs, Chennai to classify antennas under heading 8529 doesn't appear to have merit since that heading applies to parts suitable for use solely or principally with the apparatus of heading 8525 to 8528. PoE Injectors - HELD THAT - Based on the facts that, injectors take a data only connection from a business router or switch and add power via an AC power adapter connected to standard U.S. outlet; that they transmit both the power and the data over an Ethernet cable to a POE-enabled device, such as a camera, an access point or an IP phone; that, injectors are only needed when the source device does not have a POE-enabled output; that, injectors can be used by themselves or with a POE Splitter; that, the POE injectors do not alter the data, they only add power to the transmission cable; that the output is automatically determined based upon the necessary power requirements, up to a maximum of 15.4W, and they are 802.3af compliant; the applicable subheading for the POE Injector (model # IL-P0E150S), and the POE Splitter (model # TL-POE1OR) was held to be 8504.40.8500 in the Harmonized Tariff Schedule of the United States which provides for Electric Transformers, static converters(rectifiers) and inductors - as a means to provide power and to convert AC power supply to DC for usage by the devices, the proper classification of PoE Injector, and Adaptors 1 and 2 would be 85044029 as rectifiers - Since it is held that the PoE Injector is not a device for reception, conversion and transmission or regeneration of voice, images, data etc., the classification of 85176990 suggested by the Commissioner of Customs, Chennai Seaport also doesn't appear to be proper. Eligibility for benefit of Sr. No. 5 of Notification No. 57/2017-Cus., dated 30.06.2017 and Sr. No. 4 of Notification No. 25/2005-Cus., dated 01.03.2005 - HELD THAT - The passive antennas with Model Nos. S8RL4H and S8RL4G are classifiable under sub-heading 85177090 and since such antennas are not parts of cellular mobile Phones, the nil rate benefit under Sr. No. 5 of Notification No. 57/2017-Cus., dated 30.06.2017 would be available to the antennas. Sr. No. 4 of Notification No. 25/2005-Cus., dated 01.03.2005 extends exemption to static converters for automatic data processing machines and units thereof, and telecommunication apparatus, other than static converters for cellular mobile phones falling under six-digit entry 850440. In respect of PoE Injector and Adapters 1 and 2, it is held that proper classification is sub-heading 85044090. However, none of these three devices are meant for use in automatic data processing machines or telecommunication apparatus - the relevance of Notification 50/2017-Cus. dated 30.6.2017 to the present proceedings is not understood. None of the eight items under consideration in the present proceedings are classifiable under heading 8537. Application disposed off.
Issues Involved:
1. Classification of Networking Devices (ODU 1, ODU 2, IDU) 2. Classification of Passive Antennas (Antenna 1, Antenna 2) 3. Classification of PoE Injector and Adaptors 4. Eligibility for Exemption under Notification No. 57/2017-Cus. and Notification No. 25/2005-Cus. Issue-wise Detailed Analysis: 1. Classification of Networking Devices (ODU 1, ODU 2, IDU): The applicant sought classification under CTI 8517 62 90 for ODU 1, ODU 2, and IDU, which are used to form networks N2B and N3. These devices receive, convert, and transmit signals to provide content to Fire TV sticks. The Commissioner of Customs, Chennai, and Mumbai concurred with this classification. The devices' primary function is to handle data transmission, not broadcasting, thus eliminating heading 8525. Therefore, the correct classification is under sub-heading 85176290, which covers machines for the reception, conversion, and transmission or regeneration of voice, images, or other data. 2. Classification of Passive Antennas (Antenna 1, Antenna 2): The applicant proposed classification under CTI 8517 70 90, supported by the HS Committee's recommendations. The Commissioner of Customs, Chennai, suggested sub-heading 85291029, while ACC, Mumbai, suggested sub-heading 85176290. The antennas function to transmit user commands and receive content, similar to antennas for base stations classified under 8517 70 90 in the Reliance Jio Infocom case. Therefore, the correct classification is sub-heading 85177090. 3. Classification of PoE Injector and Adaptors: The applicant proposed classification under CTI 8504 40 29. The Commissioner of Customs, Chennai, suggested 85176990 for the PoE Injector but concurred with the applicant for the adaptors. ACC, Mumbai, suggested 85176290 if imported together, otherwise 85044029. The PoE Injector and adaptors primarily provide power and convert AC to DC. Based on their function, the correct classification is sub-heading 85044029, as rectifiers. 4. Eligibility for Exemption under Notification No. 57/2017-Cus. and Notification No. 25/2005-Cus.: - Notification No. 57/2017-Cus.: The passive antennas (Model Nos. S8RL4H and S8RL4G) classified under 85177090 are eligible for the exemption since they are not parts of cellular mobile phones. - Notification No. 25/2005-Cus.: The PoE Injector and adaptors (Model Nos. POE16R - AFG, LA23IN, and PA23IN) classified under 85044029 are not eligible for the exemption as they are not used with automatic data processing machines or telecommunication apparatus. Conclusion: (a) Networking devices (Model Nos. N3XU6S, N3XU5S, N3XU7S) are classified under sub-heading 85176290. (b) Passive antennas (Model Nos. S8RL4H, S8RL4G) are classified under sub-heading 85177090. (c) PoE Injector (Model No. POE16R - AFG) and adaptors (Model Nos. LA23IN, PA23IN) are classified under sub-heading 85044029. (d) Passive antennas (Model Nos. S8RL4H, S8RL4G) are eligible for the benefit of Sr. No. 5 of Notification No. 57/2017-Cus. (e) PoE Injector (Model No. POE16R - AFG) and adaptors (Model Nos. LA23IN, PA23IN) are not eligible for the benefit of Sr. No. 4 of Notification No. 25/2005-Cus.
|
