2018 (5) TMI 894

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.... both sides, we take up the appeal for final hearing. 2. The present appeal is filed against the Order in-Appeal No. CC(A) CUS/I&G/81/2011 dated 22.03.2011 passed by the commissioner of Customs (Appeals), New Delhi. 3. Brief facts of the case are that the appellant on 26.05.2011had imported certain equipments for the purpose of testing telecommunication networks. The Department wants the same under CETH 90308990 - others. But the appellant classified the same under CETH 90304000 which deals with "other instruments and apparatus, specially designed for telecommunications (for example, cross-talk meters, gain measuring instruments, distortion factor meters, psophometers) which was at NIL rate of duty. Both the lower authorities have rej....

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.... to connect various computers owned by an organisation to a telecommunication line and consequently, enables various computers/ terminals users to use the telecommunication services. Therefore, even if the ld. Commissioner (Appeals) is correct that the imported goods can be used in LAN, still there is no change in classification and the imported goods would still be classified under Entry 90304000 only. Hon'ble Supreme Court in the case of BSNI vs. Reliance Communication Ltd. (2011) I SCC 394 has held that telecommunication is about transferring information from one place to another. This includes telephone conversations, television signals, computer files and other type of data. As per the Britannica Encyclopaedia, a telecommunication ....

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....90304000 but will fall under CETH 90308990. 6. We have carefully considered the submissions made by both the sides. The crux of the dispute is whether the items under import are specially designed testing equipments for telecommunications. If so, they will get classified under CETH 90304000, as sought by the importer and will be entitled to duty free clearance. But the Authorities below have taken the view that the imported goods are capable of being used both for telecommunications applications as well as other applications such as in LAN network and hence, they cannot be held as apparatus specially designed for telecommunications  We have gone through the information leaflet for the importer's goods. The modal HST-3000 is s....