9911796707
TMI Blog2005 (11) TMI 94X X X X Extracts X X X X X X X X Extracts X X X X ..... sed the view that the product under consideration is clearly a telecommunication apparatus. According to the applicant, the goods are classifiable under sub-heading 8517 50 which reads "other apparatus, for carrier-current line systems or for digital line systems". They have suggested that the proper classification would be under Tariff Item 8517 50 99. Copies of the rulings issued by UK Customs, USA Customs and Australian Customs have also been enclosed along with the application, all of whom have classified this product under tariff sub-heading 8517 50. The designated Commissioner, namely, the Commissioner of Customs, Air Cargo Exports, New Custom House, IGI Airport, New Delhi (hereinafter to be referred to as "the Commissioner") in his comments has, however, expressed the view that the classification of this item would be under Tariff Item 8543 89 79 on the ground that the repeater is an amplifier having an independent function and is not covered more specifically by a heading of any other Chapter of the Nomenclature, nor is it excluded by the operation of a legal note of Section XVI or to the Chapter 85. The Tariff Item 8543 89 79 would therefore be the appropriate classifica ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s. The control circuits operate to regulate the amplifier outputs, so that any decline in the output of one pump unit can be compensated by an increase of output from the other." 5. While giving their response to the comments of the Commissioner, the applicant has reiterated the technical information already supplied as annexure to the application and has contended that the function of repeater is to amplify the signal for transmission in a local/wide area network. It is not an independent unit but is part of the transmission chain. It has been further submitted by them that the classification of repeaters was discussed at the World Customs Organization and it was agreed that repeaters for local area networks would properly fall under Heading 8471 while repeaters for wide area networks are classifiable under the Heading 8517. Furthermore, the Schedule submitted by India to the World Trade Organization in respect of ITA (Information Technology Agreement) clearly indicates that these products are classified under Heading 8517. The applicant has also submitted that the rulings already issued in other countries are based on the common understanding/principles of the World Customs Org ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o fall under Tariff Heading 8543, it has to fulfil three requirements, namely, (a) it has to be an electrical machine or apparatus (b) it must have individual function and (c) it must not be specified or included elsewhere in Chapter 85. The HSN Explanatory Notes to Heading 8543 provide inter alia that :- "The electrical appliances and apparatus of this heading must have individual functions. The introductory provisions of Explanatory Note to Heading 84.79 concerning machines and mechanical appliances having individual functions apply, mutatis mutandis, to the appliances and apparatus of this heading. Most of the appliances of this heading consist of an assembly of electrical goods or parts (valves, transformers, capacitors, chokes, resistors, etc.) operating wholly electrically. However, the heading also includes electrical goods incorporating mechanical features provided that such features are subsidiary to the electrical function of the machine or appliance". The introductory provisions of Explanatory Note to Heading 84.79 explains what has to be regarded as having "individual functions". The following two categories have been indicated therein :- "(A) Mechanical devic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the technical information supplied by the applicant that the product under consideration contains, apart from the optical amplifiers and items listed at Sl. Nos. (ii) to (viii) above, other equipments like repeater supervisory system and fault location facilities. Thus the configuration of the product tends to indicate that it is a combination of optical, electrical/electronic and mechanical elements and the function of amplification plays an integral and inseparable part in the overall operation of the product. Keeping in view the HSN Explanatory Notes quoted above, it becomes difficult to accept the contention of the Commissioner about the coverage of the goods in question under Tariff Heading 8543. On the contrary, having regard to the description of the product, its component parts and their functions as narrated in the technical write up submitted by the applicant, it appears to us that all these put together contribute to the function of transmission of data as a telecommunication apparatus for carrier current line systems or for digital line systems falling under Heading 8517 rather than as an "amplifier" falling under Heading 8543 as suggested by the Commissioner. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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