CDMA WLL phones and cellular technology support exemption under Notification No. 6/2003-CE despite size or range differences.

CDMA WLL phones manufactured under Chapter heading 8525 2019 were held eligible for exemption under Notification No. 6/2003-CE because they functioned on cellular technology and were not excluded merely for differences in range or size. The earlier view that fixed wireless telephones and hand-held mobile phones used the same technology was followed, and the Board circular was relied on to support that position. The denial of exemption on the ground that the goods were not cellular phones was therefore not sustainable, and the benefit of the notification was extended.

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Issues: Whether CDMA WLL phones manufactured by the appellant were entitled to exemption under Notification No. 6/2003-CE dated 01.03.2003.

Analysis: The appellant's goods were classified under Chapter heading 8525 2019 of the First Schedule to the Central Excise Tariff Act, 1985, and the dispute concerned denial of exemption on the ground that the phones were not cellular phones. The issue had already been considered in an earlier decision involving similar products, where CDMA WLL phones were held to function on cellular technology and the exemption was extended. The Board circular also accepted the Supreme Court's view that the technology used in fixed wireless telephones and hand-held mobile phones being the same, the exemption could not be denied merely because of range or size. Following that settled position, the impugned denial of exemption could not be sustained.

Conclusion: The appellant was eligible for the exemption under Notification No. 6/2003-CE dated 01.03.2003, and the denial of benefit was set aside.

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