9911796707
TMI Blog2024 (10) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... er Line Cards can be classified either under CTI 8517 70 90 or CTI 8517 70 10 - it was held that 'Router Line Cards are Populated PCBs as they are printed circuit boards mounted with various active and passive electronic elements. Therefore, these cards can be classified under CTI 8517 70 10, which covers populated, loaded or stuffed printed circuit boards . It would attract NIL rate of duty.' In view of the aforesaid decision of the Tribunal in M/s Vodafone India Limited, the classification of Router Line Cards by the Principal Commissioner under CTI 8517 62 90, as claimed by the department cannot be sustained. In this view of the matter, the classification of Router Line Cards by the appellant would have to be maintained. The orde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he main equipment. The appellant, therefore, classified the Router Line Cards under CTI 8517 69 30 and availed the benefit of exemption from payment of Basic Customs Duty under Notification dated 01.03.2005 at Serial No. 13N. 3. The Principal Commissioner issued a show cause notice dated 26.05.2020 directing the appellant to show cause why- i. Classification of subject goods cleared under CTI 8517 69 30 should not be rejected and reclassified under CTI 8517 62 90; ii. Basic Customs Duty of Rs. 1,32,66,082/- should not be demanded and recovered under section 28(1) of the Customs Act. iii. Applicable interest should not be recovered under section 28AA of the Customs Act; iv. Subject goods should not be confiscated under section 111(m) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ioner has been assailed in this appeal. 6. Shri Dhruv Matta, learned counsel assisted by Shri Prafful Dawani, learned counsel appearing for the appellant submitted that the issue about classification of Router Line Cards has been settled by the Tribunal in the case of the appellant itself in M/s Vodafone India Limited vs Principal Commissioner of Customs (Import) [ Customs Appeal No. 52287 of 2019 decided on 20.09.2022] . Learned counsel for the appellant submitted that once the classification of the Router Line Cards is under CTI 8517 6930, then the Basic Custom Duty would be exempted under the Notification dated 01.03.2005 at Serial No. 13N. Learned counsel further submitted that if the classification is under CTI 8517 70 10, then the app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... shows that these cards/modules are only parts of the existing Routers which have already been imported or installed by the appellants. The Router chassis has dedicated slots marked for these line cards, switch cards and router processor cards. The line cards are simply inserted in these slots in the existing Routers. These line cards become functional only when plugged into the said slots in the Router chassis. The line cards source intelligence from control and processor module of the Router. These line cards cannot perform its function on a stand-alone basis in the imported condition. Further, communication between the line cards and the other components of the Router, most importantly, the switch processor board, is in the electrical do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ding that Router Line Cards are classifiable under CTI 8517 70 90 in view of Note 2 (b) of Section XVI of the Tariff Act. 27. Learned counsel for appellant, in the alternative, submitted that even otherwise imported Router Line Cards are in the nature of a PCB and, therefore, classifiable under CTI 8517 70 10 and not CTI 8517 69 90. Xxx 34. Router Line Cards are Populated PCBs as they are printed circuit boards mounted with various active and passive electronic elements. Therefore, these cards can be classified under CTI 8517 70 10, which covers populated, loaded or stuffed printed circuit boards . It would attract NIL rate of duty. 10. In view of the aforesaid decision of the Tribunal in M/s Vodafone India Limited, the classification of Ro ..... X X X X Extracts X X X X X X X X Extracts X X X X
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