2023 (7) TMI 598 - AT - Customs

Classification of imported goods - Line Extender - classifiable under Chapter Heading 8517 or 8543? - HELD THAT - The amplifier that falls under Chapter Heading 8543 has to be an independent functional unit but the Line Extender cannot function independently as it forms part of the Digital Subscriber Line systems. The Original Authority had categorically found that Line Extender was only a part of the machine digital line system and not the whole machine and once it is accepted as a part of the digital line system, the item is rightly to be classified as parts of Digital Subscriber Line system under Chapter Heading 8517. Moreover, the technical literature placed on record by the appellant clearly establishes that it is nothing but a part of the digital line system. The item Line Extender being a part of digital line system, even as per the HSN Notes falls under Chapter Heading 8517. As per the Chapter Notes of Chapter 8543, Electrical appliances and apparatus of this heading must have individual functions. It is an admitted fact that Line Extender cannot function in isolation but except as a part of digital line system. Hence, the classification under Chapter Heading 8543 is ruled out. Accordingly, the Line Extender is rightly classifiable under Chapter Heading 8517 as claimed by the appellant. The impugned order is set aside - Appeal allowed.

Summary

Issues involved:
Classification of the item 'Line Extender' under Chapter Heading 8517 or 8543.

Details of the judgment:

Issue 1: Classification of 'Line Extender'
The appellant imported various items, including a 'Line Extender', which was classified by the Commissioner (Appeals) under Chapter Heading 8543 7069 as a Broadcast Signal Amplifier. The appellant challenged this classification, arguing that the 'Line Extender' should be classified under Chapter Heading 8517 62 as a Digital Subscriber Line (DSL) repeater.

Details:
- The appellant's advocate cited definitions from Webster's New World Telecom Dictionary and information from a website to support the classification of 'Line Extender' as a DSL repeater.
- Reference was made to a decision by the Advance Ruling Authority and a ruling by the United States International Trade Commission to argue that similar devices were classified under Chapter Heading 8517.
- The Revenue representative maintained that the 'Line Extender' should be classified under 8543 7069.

Issue 2: Analysis of Chapter Headings
The dispute centered on whether the 'Line Extender' should be classified under Chapter Heading 8517 or 8543. The appellant argued that the 'Line Extender' is a transmission system enhancing weak signals, similar to a DSL repeater, thus falling under Chapter Heading 8517.

Details:
- The Chapter Headings for 8517 and 8543 were compared to determine the appropriate classification.
- It was noted that an amplifier under 8543 must be an independent functional unit, whereas the 'Line Extender' is an integral part of a Digital Subscriber Line system.
- The Explanatory Notes to Chapter Heading 8517 supported the classification of 'Line Extender' as part of a digital line system under 8517.

Conclusion:
The Tribunal ruled in favor of the appellant, setting aside the Commissioner (Appeals) classification and allowing the appeal. The 'Line Extender' was deemed rightly classifiable under Chapter Heading 8517 as a part of a Digital Subscriber Line system.

Separate Judgment:
No separate judgment was delivered by the judges in this case.