2005 (7) TMI 237 - AT - Customs

Summary

Issues Involved:

1. Entitlement of antennae imported for concessional rate of duty under Notification No. 21/2002-Cus.
2. Classification of installation materials as Microwave Communication Equipment under Customs Tariff Heading 8525.20.
3. Valuation of installation materials and antennae.

Issue-Wise Detailed Analysis:

1. Entitlement of Antennae for Concessional Rate of Duty:

The appellants imported Base Transreceiver Station (BTS) and claimed the benefit of a concessional rate of duty under Sl. No. 239 of Notification No. 21/2002-Cus., dated 1-3-2002. The Revenue later contended that the installation materials and antennae were not parts of BTS and hence were not entitled to the benefit of the notification. The appellants argued that BTS includes all items necessary for its function, including antennae and cables, which are essential for sending and receiving signals. The Tribunal concluded that antennae and installation materials are indeed parts of BTS and thus entitled to the concessional rate under Sl. No. 239 of the notification.

2. Classification of Installation Materials as Microwave Communication Equipment:

The appellants imported various components of Microwave Communication Equipment, including outdoor and indoor units, radio cables, and antennae. The Revenue argued that installation materials and antennae are not part of Microwave Communication Equipment. The appellants countered that these items are integral to the functioning of the equipment, as supported by technical literature and user manuals. The Tribunal agreed with the appellants, stating that the installation materials and antennae are parts of Microwave Communication Equipment classifiable under Heading 8525.20 and are entitled to the benefit of Notification No. 21/2002-Cus., Sl. No. 239, List 22, Item Sl. No. 3.

3. Valuation of Installation Materials and Antennae:

The appellants contested the valuation of the installation materials and antennae based on invoices from other importers, arguing that the goods imported by them were not identical to those imported by M/s. Bharati Cellular. The Tribunal held that the transaction value for the impugned goods cannot be rejected unless any of the situations mentioned in Rule 4 (2) of the Customs (Valuation) Rules applies. Therefore, the Tribunal allowed the appeals with consequential relief, indicating that the valuation based on the appellants' transaction value should be accepted.

Conclusion:

The Tribunal concluded that the antennae and installation materials imported by the appellants are entitled to the concessional rate of duty under Notification No. 21/2002-Cus., as they are integral parts of BTS and Microwave Communication Equipment. The valuation of these goods should be based on the transaction value unless specific conditions for rejection are met. The appeals were allowed with consequential relief.