Tariff classification of telecom masts denied exemption where goods were treated as metal structures, not Chapter 85 equipment.

Supporting masts and stainless steel masts used to hold antennae and solar plates were treated as metal structures under Heading 7308.20, not as equipment for a rural telecommunication network under Chapter 85. Because the concessional duty benefit under Notification No. 4/97-C.E. applied only to eligible Chapter 85 equipment, the goods could not be reclassified under Heading 8525.00 merely to secure exemption. The result was that the refund claim failed and the exemption benefit was denied.

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Issues: Whether supporting masts / SS masts classifiable under Tariff Heading 7308.20 could be treated as equipment for rural telecommunication network so as to obtain the concessional duty benefit under Notification No. 4/97-C.E. dated 01.03.1997.

Analysis: The concessional rate under the notification was available only to equipment for rural telecommunication network covered by the relevant list and classifiable under Chapter 85. The goods in question were masts / supporting structures meant to hold antennae and solar plates and did not perform any distribution function. Since there was a specific tariff entry for structures under Heading 7308.20, the goods could not be reclassified under Heading 8525.00 merely to claim the exemption.

Conclusion: The masts were not classifiable under Chapter 85 and were not entitled to the exemption benefit under Notification No. 4/97-C.E.; the claim for refund failed.

Ratio Decidendi: An exemption meant for equipment classifiable under Chapter 85 cannot be extended to goods that are in substance structures falling under a specific tariff heading for metal structures.

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