9911796707
TMI Blog2024 (10) TMI 636X X X X Extracts X X X X X X X X Extracts X X X X ..... outer Line Cards] imported by the appellant under Customs Tariff Item [CTI] 8517 69 30 of the First Schedule to the Customs Tariff Act, 1975 [Customs Tariff Act] and reclassifying the Router Line Cards under CTI 8517 62 90. The Principal Commissioner has also confirmed the demand of duty under section 28 (1) of the Customs Act, 1962 [Customs Act] with interest. The order also confiscates the goods under section 111 (m) of the Customs Act. Penalty under section 112 (a) (II) of the Customs Act has also been imposed upon the appellant. 2. The appellant had imported the Router Line Cards through five Bills of Entry during the period from 29.05.2018 to 11.07.2018. The Router Line Cards have been imported by the appellant for the main equipment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , therefore, proposal for classification under CTI 8517 62 90 is incorrect. (iv) Router Line Cards are in the nature of Populated Print Circuit Board [PCB] assembly and are, therefore, correctly classifiable under CTI 8517 70 10; (v) Router Line Cards are not liable for confiscation under section 111 of the Customs Act. Mere claim to an exemption notification does not amount to mis-declaration so long as the description given in the Bill of Entry is correct; (vi) Proposal for imposition of penalty under section 112 of the Customs Act is incorrect. The ingredients of the provision are not fulfilled and the proceedings also involve interpretation of tariff entries. 5. The Principal Commissioner rejected the classification indicated by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ntative appearing for the department have been considered. 9. What transpires from the order passed by the Principal Commissioner is that the appellant claimed classification of Router Line Cards under CTI 517 69 30 and availed the benefit of the Exemption Notification dated 01.03.2005 under Serial No. 13N. The Principal Commissioner, however, did not accept the said classification and reclassified the Router Line Cards under CTI 8517 62 90. What has, therefore, to be determined is whether the Router Line Cards deserve classification under CTI 8517 62 90. A Division Bench of the Tribunal in the case of the appellant itself in M/s Vodafone India Limited in the decision rendered on 20.9.222 found that the Router Line Cards can be classified ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ards. Without connection to the overlying software of the equipment and the control/timing information being provided to them, the said line cards are incapable of operation. The line cards are proprietary of the Original Equipment Manufacturer. These line cards are, therefore, not cross compatible with devices of other manufacturers but are only usable for the purpose for which they are designed for e.g., a line card manufactured by Cisco would be usable only in a Cisco Router and nowhere else. In other words, these cards/modules possess no functionality other than when used in the dedicated slot designed for them in the primary equipment chassis. Each primary equipment will possess dedicated and proprietary slots into which alone the said ..... X X X X Extracts X X X X X X X X Extracts X X X X
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