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TMI Blog2023 (11) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... through the same router, mesh Wi-Fi systems rely on multiple Wi-Fi nodes. One node is the designated primary router and is directly wired into the gateway connection, while the other nodes act as satellites. Collectively, the nodes function as a single network. The device gets connected to the node that is closest to it. As per the applicant, the subject goods are classifiable under Chapter Heading 8517 of Customs Tariff Act, 1975 and ought to be specifically classified under sub-heading 8517 62 90, as they are routing apparatus and are supported by the HSN Explanatory notes under Heading 85.17. Further they attract eligibility benefit of exemption under Sr. No. 13N of Notification No. 24/2005-Customs, dated 1-3-2005, as amended. In order to merit classification under 8517, it is essential that the subject goods under consideration meet the criteria as laid down in the relevant headings, sub-heading and notes cited above. From the relevant headings and HSN notes reiterated above, it is apparent that (a) Switching and routing apparatus are specifically covered under sub-heading 8517 62, (b) Routers are covered as other communication apparatus in the HSN notes under sub-heading 8517 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oducts. They intend to import aforementioned models of Routers from China and sell it further to their distributors/consumers. The specifications and characteristics of the Models proposed to be imported are as follows : Attribute HALO Base Pro X2 Quantum D2G Quantum S2K WL-WN 529E4 Technique Wi-Fi Speed AC1200 AC 1200 N300 N300 Band Dual Band Dual Band Single Band Single Band 2.4 GHz 300 Mbps 300 Mbps 300 Mbps 300 Mbps 5 GHz 867 Mbps 867 Mbps - - 4G LTE - - - 4G LTE 4G Download - - - 150 Mbps Hardware Core Dual Core 880 MHz Dual Core 1 GHz 580 MHz 580 MHz Flash 128 Mb 64 Mb 16 Mb 64 Mb RAM 1 Gb 512 Mb 64 Mb 512 Mb WAN 1 x GbE 1 xGbE 1 x 100M E 1 x 100M E LAN 1 x GbE 4 x GbE 3 x 100M E 2 x 100M E 4G card slot - - - 4G card slot WPS Button - Yes Yes Yes Reset button Yes Yes Yes Yes Turbo button - Yes - - Power 12V/1A 12V/1A 5V/1A 12V/1A Antenna 4x3dBi (Internal) 4x5dBi (External) 2x5dBi (External) 4x5dBi (External) 2.1 As cited by the applicant, the subject goods are devices that connect two or more packet-switched networks or sub-networks and deliver Wi-Fi network access to all parts o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wireless network (such as a local or wide area network) : **** 8517 62 -- Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus : 8517 62 10 --- PLCC equipment 8517 62 20 --- Voice frequency telegraphy 8517 62 30 --- Modems (modulators-demodulators) 8517 62 40 --- High bit rate digital subscriber line system (HDSL) 8517 62 50 --- Digital loop carrier system (DLC) 8517 62 60 --- Synchronous digital hierarchy system (SDH) 8517 62 70 --- Multiplexers, statistical multiplexers 8517 62 90 --- Other 2.3 Subsequently, the applicant has made reference to the case of Collector of Customs, Bombay v. Business Forms Ltd. Thr. O.L., 2002 (142) E.L.T. 18 (S.C.), wherein the Supreme Court has held that the HSN Explanatory Notes released by the WCO aid in the interpretation of the Headings of the Tariff and may be used as a safe guide. I agree with this view and find that there are numerous Supreme Court judgments in which similar observations are placed on the record by the Hon'ble Court. Accordingly, relevant portion of the HSN Explanatory Notes to Heading 85.17 has been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .T. 491 (S.C.) * Star Paper Mills Ltd. v. Collector of Central Excise [1989 (43) E.L.T. 178 (S.C.) * Commr. of C. Ex., New Delhi v. Connaught Plaza Restaurant (P) Ltd., 2012 (286) E.L.T. 321 (S.C.) Consequently, they have submitted definitions of 'Routers' as seen in the Dictionary of Science and Technology, Webster's New World Dictionary and The Que's Computer & Internet Dictionary Book Definition Dictionary of Science and Technology Communications device that receives data packets in a particular protocol and forwards them to their correct location via the most efficient route; (b) a device that connect two or more LANs that use the same protocol, and allows data to be transmitted between each network Webster's New World Dictionary An intelligent switch capable of deciding where to forward packets based on a view of the network as a whole. A router is a programmable device that works with other routers, via a routing protocol, to establish the best path on which to forward a packet with a given address The Que's Computer & Internet Dictionary In a packet-switching network such as the Internet, one of two basic devices (the other is a host). A router is an electronic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ;Personal hearing in the matter was conducted on 17-2-2023 at the behest of the applicant. The applicant was represented by Shri Hari Radhakrishnan (Advocate). He reiterated CAAR-I application by taking recourse to grounds of the application, relevant extracts of the tariff, previous rulings and technical write-up. He finally requested to issue ruling in the present case based on the facts on record. No one represented the jurisdictional Commissionerates of Customs in the hearing. 5. I have considered all the materials placed before me in respect of the subject goods for which an advance ruling has been sought. I have gone through the written submissions as well as the case presentation made along with display of product samples during the course of personal hearing. In the absence of comments from the jurisdictional authority on the subject goods, I proceed to pronounce ruling on the issue, on the basis of information available on record. The subject goods for which advance ruling has been sought, its characteristics, functions, utility etc. has been broadly mentioned in the aforesaid paras. Applicant has submitted definitions of 'Routers' as seen in the Dictionary of Scienc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Item pertaining to Router was eliminated with effect from 1-1-2020, thus Tariff Item 8517 69 30 is not under consideration in the present application. There was no exemption for 'Router' under Sl. No. 13N of Notification No. 24/2005-Cus. during the period covered in the above SCNs. I agree with the facts put forward by the applicant that this exemption was introduced only with effect from 1-1-2020; that the models of the routers considered in the aforementioned SCNs are for use in Enterprises/offices, whereas the routers concerned in present application are much smaller and are meant for use at the houses of customers. However, with the elimination of Tariff heading 8517 69 30, the legal framework has changed. Under the new legal framework, there is no dispute pending in the applicant's case before any officer of Customs, Appellate Tribunal or any Court of Law and the same has been declared by the applicant in the CAAR-1 form. Since the new legal position w.r.t. both classification and notification benefit has come into existence w.e.f. 1-1-2020 and the Show Cause Notices pertain to the legal framework prevailing to period prior to 31-12-2019, I allow admission of the applications ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network), other than transmission or reception apparatus of Heading 8443, 8525, 8527 or 8528. In terms of the HSN Explanatory Notes to Heading 8517, "This heading covers apparatus for the transmission or reception of speech or other sounds, images or other data between two points by variation of an electric current or optical wave flowing in a wired network or by electromagnetic waves in a wireless network. The signal maybe analogue or digital. The networks, which may be interconnected, include telephony, telegraphy, radio-telephony, radio-telegraphy, local and wide area networks". 5.6 CTH 8517 is further subdivided into three 1-dash sub-headings. The second one-dash sub-heading covers 'other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network)'. Elaborating on the other communication apparatus, the explanatory notes state that this group includes apparatus which allows for the connection to a wired or wireless communication n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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