TaxTMI 
TaxTMI 
2000 (5) TMI 358
X X X X Extracts X X X X
X X X X Extracts X X X X
....lite Communication Service through VSAT (Very Small Aperture Terminal) from February 1995. The Department of Telecommunication has licensed the appellants to provide the electronic link through satellite media to the user organisations for inter-connecting only offices for the purpose of transferring electronic data between the locations. The electronic link is provided with the help of an earth station (called Hub) located at Gurgaon - DOT has provided the appellants the satellite space on rental basis to provide the link to the user organisation. In addition to transmission of data through satellite, the appellants also provide the facility to transmit data through fascimile. However, since fax machines work on analogue telephone lines an....
X X X X Extracts X X X X
X X X X Extracts X X X X
....517.90 and also rejecting the alternative plea for classification under heading 8543.89 which covers "Electrical machines and apparatus having individual functions, not specified or included elsewhere in this Chapter" on the ground that a specific heading viz. 8517.50 was available for the goods, confiscated the goods with option to redeem them on payment of a fine of Rs. 20 lakhs and also imposed a personal penalty of Rs. 5 lakhs on the importers. Hence this appeal. 4. We have carefully considered the rival submissions and perused the records. A fax machine is used for the purpose of transmitting digital signals through a telephone line through an in-built module. The ordinary telephone line, based on copper cables is referred to as ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... in themselves even without that item. For example, if a plea is made that petrol or diesel is a part of a motor vehicle because the motor vehicle cannot run without petrol or diesel, the claim will have to be rejected because the motor vehicle is complete in itself even without petrol or diesel, although it cannot function without it. We therefore, rule out classification of FIM under Customs Tariff heading 8517.90 as parts of fax machine. 5. Let us now consider whether classification under Customs Tariff heading 8517.50, as held by the Commissioner is correct. He has held that the importers have accepted that FIM performs the function of modulation of analogue and digital signals; that modem (modulator and de-modulator) and FIM have....
X X X X Extracts X X X X
X X X X Extracts X X X X
....h the digital line of the VSAT system using either pulse code modulation or other digital system of modulation. 7. It is seen from the book "Applied Data Communications - A Business Oriented Approach" by James E. Goldman that the modem generates a carrier waive which is then altered (modulated) to represent the bits of data. It is because the modem generates a carrier waive that it is treated as an apparatus for carrier-current, line systems. On the other hand, a modem is not required in a digital network since there is no need to modulate the digital signal into an analogue signal. In digital network, a CSU/DSU (Channel service unit/Data service unit) is used to terminate the digital circuit. Therefore, apparatus for digital line sys....