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2018 (12) TMI 172
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....lassifiable under Customs Tariff Head 8528. That the Appellant is liable for duty along with interest and penalty. The adjudicating authority classified the impugned goods under 8528 of CTH holding that the impugned goods are Digital Heads & Equipment, which help in transmitting data. A head-end is a cable television industry term for a combination of television signal transmission apparatus and is in dividually configured as per the set specifications for every particular customer. It receives satellite television signals and after modification, transmits the signal into a cable television. All the products area dressed as COPE/ Digital Head-end items for the purpose of trading/ marketing. Thus the head-end serves as integral function in the cable TV Transmission chain. Head-end contains combinations converters, signal processors/ generators, combiners, scramblers, amplifiers, modulators/ demodulators and receivers. The receiver/ descrambler decode a scrambled signal for further transmission, reception and subsequent display. In the instant case, the head-end is a combination of individual machines, interconnected by electric cables, intended to contribute together to the clear....
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....ng or reproducing apparatus. 8528.71 - Not designed to incorporate a video display or screen 8528.72- Other, colour 8528.73 - Other, monochrome" He submits that the goods in question being equipment for conversion and compression (coding) are used for conversion of signals as apparatus for transmission at transmission side for both wired and wireless networks (WAN&LAN) and not as subscribers end as reception apparatus for television. That even in case of exports, subject goods have been classified under Chapter 8517. The Appellants are manufacturers and importers of various telecommunication products and equipments for network and also of equipments for conversion and compression of data for various digital network operators not limited to supplies to cable operators. He draws our attention to the invoices issued by them to different industries such as Space Communication Centre (Space & Satellite related applications), Infosys (Information Technology & Software Industry), Hathway Cable & Datacom (Cable & Broadband, Cable & Network service provider), Broadband (Internet service provider). He submits that CTH 8528 does not include apparatus for transmission, instead it i....
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.... telecommunication, satellite communication, internet protocol or ITPV and also for television transmission, but not ever for any television reception. The impugned goods are not imported as "Television Reception", but rather are normally machines for data conversion equipment for converting signals from "analogue to digital" by various processes as stated in the SCN itself. That the Adjudicating authority has himself held that these equipments are used for "Transmission" of cable television program, which in fact is not even directly so and accordingly can never be termed as any "Reception" apparatus. They are involved in system integration and enabling net work systems manufacture /assembling besides into other manufacturing activities also. The equipments are not limited or even used for television transmission directly or reception. These are essentially data conversion equipments including telecommunication and internet protocol services which are, therefore, only classifiable in Chapter 8517. The explanatory note to Chapter 8517 clearly mentions that where the different apparatus are essentially performing the function as a combination of machines to the principal function of....
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.... C.Ex, Del V/s Carrier Aircon Ltd - 2006 (199) ELT 577 (SC) (v) Dunlop India Ltd V/s UOI & Ors -1983 (13) ELT 1566 (SC) (vi) CCE V/s Wood Polymers Ltd -1998 (97) ELT 193 (Ce) (vii) Motor Inds. Co. Ltd V/s CC -1991 (56) ELT 410 (Tri) (viii) CC V/s DejeroLogix - 2014 (310) ELT 254 (Del, HC) (ix) CC V/s DejeroLogix - 2014 (303) ELT 565 (Tri, Del) (x) Comm. Vs. Samsung India Elec.P.Ltd 2016 (340) ELT 430 (AAR) (xi) Logic India Trading Co. v/s Comm.- 2016(337)ELT - 65 (Tri, Bang) (xii) C. Net Communications (I) Pvt Ltd. V/s Commr. of Cus. (Import), Mumbai - 2004 (170) ELT 446 (Tri, Del) (xiii) Commr. V/s Fibcom India Ltd - 2003(152)ELT 108 (Tri, Del) (xiv) HCL Comnet Systems & Services Ltd v/s Commr-2002 (139) ELT 304 (Tri, Del) 4. On the other hand Shri. Jeetesh Nagori, Ld. Additional Commissioner (AR) appearing for the Revenue reiterates the findings of the impugned order. He further submits that the items in question, i.e. Encoders, Multiplexers etc. are digital head-end equipments, which help in transmitting the data. These are addressed as COPE /Digital head-end items for the purpose of trading / marketing. The cable television head-end is master fa....
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.... or sound or video recording or reproducing apparatus for the display of signals (television sets) and (2) Apparatus for the reception of television signals, without display capabilities. These apparatus receive signals and convert them into a signal suitable for display. Therefore, when it is established that the disputed products namely encoders, modulators and multiplexers are for use as a reception apparatus for television, there could not be case for classifying them under CTH 85.17 and CTH 85287390 is the correct heading for the products. Therefore, the classification for the products in question namely encoders, modulators and multiplexers under CTH 85287390 is appropriate and correct. That in case of ruling by World Customs Organization relied upon by the Appellant for classification of goods under CTH 85.28, a communication was made to the Joint Secretary (Customs), Central Board of Excise & Customs, New Delhi under F.No. VIII/10-116/ACC/O & A/2014 dated 3.1.2018 seeking their confirmation as to whether the classification decision taken in the Harmonised System of Committee of World Customs Organisation in 44thth session held in October, 2009 have been accepted by the Boar....
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....to 8528 reads as under: "85.28 - Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus. - Reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus. 8528.71 - Not designed to incorporate a video display or screen 8528.72- Other, colour 8528.73 - Other, monochrome" The Revenue has sought to classify the impugned products under 85.28 mainly on the ground that these are parts and apparatus for transmission of signals for television transmission. We find that the CTH 85.17 covers "other apparatus for the transmission or reception of voice, images or other data, including apparatus for communication in wired or wireless network (such as local or wide network) other than transmission or reception apparatus of heading 84.43, 85.25, 85.27 or 85.28". In 85.17 6270, the items multiplex, statistical multiplex and under sub-heading 8517 6290, other items are covered. The heading 8528 7390, i.e. "other" is covered by 8528, which c....
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....dings of the Commissioner in Para 3.5 of the impugned order are reproduced below :- "3.5 I also find that the impugned goods are specially for transmission purpose and not for one to one communication. The device is essentially a standalone piece which is between frontend (camera, etc.,) and back end (studio). Essentially the equipment is meant for transmission of live video between the field reporter and studio. The signal is captured by devices such as cameras (not part of this equipment), which get relayed to the studio with this device with the help of GSM Cellular network. At the other end, the studio (not part of this equipment) processes the signals and broadcasts to the audience." Para 6.1 From the above findings of the Commissioner in the impugned order, it is clear that the equipment, in question, is merely for transmission of audio and video signals by a reporter from some place to his studio through GSM cellular network and it is from the studio that the audio/video recording is broadcasted to the public. This fact is clear from the technical literature also, according to which this equipment gives a person the flexibility to either broadcast Live programme to the....
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....e the function of receiving the signals only and that they are reception apparatus. The moment particular apparatus has transmission function as well that would be excluded from Chapter Heading 85.28. On the other hand Chapter Heading 85.25 deals with transmission apparatus. Here under entry 8525.20 what is clarified that even if the apparatus which are transmitting signals have the additional functions of reception of signals as well, such goods will still be classified 8525.20. We are therefore of the opinion that the Tribunal has rightly classified the goods of the respondent under 8525.20. Para 4. The Commissioner, who had taken the contrary view, went by Rule 2(b), that is the classification of combination substance, and on that basis he held that since the goods were classifiable under two or more headings, classification shall be effected as per the said Rule. This itself is incorrect having regard to the fact that entry 85.28 deals only with reception apparatus with no function as transmission apparatus. Para 5. This appeal is accordingly dismissed. Para 6. The excess duty paid by the respondent, if any, shall be refunded in accordance with law." Similarly, in c....
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.... "(G)- Other communication apparatus. This group includes apparatus which allows for the connection to a wired or wireless communication network or the transmission or reception of speech or other sounds, images or other data within such a network. Communication networks include, inter alia, carrier-current line systems, digital-line systems and combinations thereof. They may be con figured, for example, as public switched telephone networks, Local Area Networks (LAN); Metropolitan Area Networks (MAN) and Wide Area Networks (WAN), whether proprietary or open architecture. This group includes: (1) Network interface cards (e.g., Ethernet interface cards). (2) Modems (combined modulators-demodulators). (3) Routers, bridges, hubs, repeaters and channel to channel adaptors, (4) Multiplexers and related line equipment (e.g., transmitters, receivers or electro-optical converters). (5) Codecs (data compressors/decompressors) which have the capability of transmission and reception of digital information. (6) Pulse to tone converters which convert pulse dialed signals to tone signals." Therefore when network interface is covered under the CTH 8517, the machine com....