TaxTMI 
TaxTMI 
2021 (10) TMI 1316
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....lity of a notification issued under sub-section (1) of section 25 of the Customs Act, 1962, having a bearing on the rate of duty. Considering the situation arising out of Covid 19. and the restrictions put in place by the Government of Maharashtra in the first week of April, 2021, the application was accepted. However, the secretariat has dated the receipt of the application as 10.08.2021, the day on which the prescribed application fee was received. The applicant has stated that the devices listed above are proposed to be imported and that the activity of importation is yet to commence. The applicant has also stated that other applications pertaining to classification of networking devices are pending before the Commissioner (Customs Authority for Advance Rulings), Mumbai. However, the devices covered under the present application are different from the other networking devices for which advance ruling applications have been filed as they are part of a different network architecture. The applicant is stated to be engaged in designing and development of systems and software applications either for its own use or for sale in India and abroad and such designing and development for or....
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..... If the content is not found in the HDD, the content is retrieved by the ODU 1 from the Amazon cloud via the LAN cable by accessing internet. The HDD is not placed on the rooftop of every building. Neighbouring buildings that do not have a HDD may be provided connectivity to another HDD of a nearby building via cables or wirelessly. The ODU l has an internal 5 GHz radio for transmission and reception of content (data) in the form of signals. The ODU 1 receives content through the LAN cable in the form of electrical signals and transmits content in the form of radio signals to ODU 2 for further transmission. The ODU 1 is MIMO enabled. (ii) The ODU 2: - One ODU 2 is installed outside each customer premise within the building that is to be served. It has two internal radios of 2.5 Ghz and 5 Ghz. ODU 2 receives radio signals from ODU 1 and converts the same to electrical signals to be sent over radio frequency cables (coaxial cables) to Antenna 1. ODU 2 is MIMO enabled. (iii) Antenna 1/ Antenna 2: - Antenna 1 or 2 are passive antennas placed outside each customer premise within the building that is to be served. Both antennas have RF cables permanently attached to th....
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.... purpose in this N3 network as it does in N2b Network. The IDU receives content through the LAN cable in the form of electrical signals and transmits content in the form of RF signals directly to the Fire TV for viewing by the customer. The IDU is MIMO enabled. 6. When a user makes a request for a content on the Fire TV stick, this request is communicated by the Fire TV stick to IDU via RF signals. IDU converts these RF signals into electric signals to be transmitted over the LAN cable connected to the switch from where the content demanded is searched for in the cached data in the HDD. If the content is not found on the HDD of the same building or the HDD of neighbouring buildings, then IDU retrieves the content from the Amazon cloud via LAN cable. The required content is received by IDU in the form of electrical signals via the LAN cable. IDU converts the electrical signals into RE signals to be transmitted to the Fire TV for viewing by the customer. 7. The applicant also proposes to import Adaptor 1 and Adaptor 2 which will be used to power IDU devices to be imported by the applicant. Adaptor 1 and Adaptor 2 will plug into a socket and perform the function of conversion fr....
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....of Customs, Chennai; in respect of classification of ODUl(Model No. N3XU6S), ODU2 (Model No. N3XU5S), IDU (Model No. N3XU7S), the proper classification would be under sub-heading 85176290. However, in respect of PoE Injector, the suggested classification is 85176990, as opposed to 85044029 suggested by the applicant. In respect of the classification of the antennas, it is the view of the commissionerate that the correct classification is 85291029, and not 85177090, suggested by the applicant. In respect of the adaptors, the commissionerate has concurred with the view of the applicant that the correct classification is 85044029. According to the Commissioner of Customs, ACC, Mumbai; ODU 1, ODU 2, and IDU are correctly classifiable under sub-heading 85176290. In respect of Antenna 1 and 2 also, the classification suggested is same, but it is opined that benefit of exemption extended under Sr. No. 5 of the Notification No. 57/201 7-Cus., dated 30.06.2017 would not be available. So far as PoE Injector and Adaptor I and 2 are concerned, it is suggested that the correct classification would be sub-heading 85176290 when all the items under consideration in the present application are impo....
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....d 7.11.2018 on classification of POE Injectors, technical literature on telecommunication, copies of Notification Nos. 25/2005-Cus., dated 01.03.2005; 50/2017-Cus., dated 30.06.2017; and 57/2017-Cus., dated 30.06.2017; copy of the CESTAT decision in the case of Commissioner of Customs (Import) vs. Reliance Jio Infocom Ltd, reported at 2019 (11) TMI 451 on classification of antennas for base station. 11. I have gone through all the relevant records, documents, and information. I have also given serious consideration to the comments from the Commissioners of Customs from Chennai and Mumbai. Prima facie, the eight items for which advance rulings have been sought can be grouped in the three categories, as has been done by the Commissioner of Customs, ACC, Mumbai. The first category would be the three networking devices, namely ODU 1, ODU 2, and IDU. The second category would be the two passive antennas. The third category would contain the PoE Injector and the two adaptors. So far as the ODU 1, ODU 2, and IDU are concerned, their role in the network architecture is to receive a command/signal in either electrical or radio form, to convert the electrical signal into radio frequency s....
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.... Examples of such devices, as per the HSN, include transmitters for radio-broadcasting or television, relay apparatus used to pick up a broadcast and retransmit it and so increase the range, relay television transmitters for transmission, by means of an aerial and parabolic reflector, from the studio or site of an outside broadcast to the main transmitter, television transmitters for industrial use. From the description of the three network devices, ODU 1, ODU 2, and IDU, as submitted by the applicant, it is clear that they do not transmit radio/video broadcast signals. On the contrary, their function is to extract the content from the hard disk drive or Amazon cloud/internet as per the demand of the user. Therefore, it is clear that the heading 8525 is not an appropriate classification for the network devices in question. The six-digit entry, 851762, which includes `Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus' is a specific entry which satisfactorily encompasses the functions of the three networking devices under consideration. Therefore, in respect of ODU I, ODU 2, and ....
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....39; In the case of Reliance Jio Infocom, reported at 2019 (369) E.L.T. 1713, the Mumbai Bench of the Hon'ble CESTAT was faced with the issue of classification of antenna to be used with Base Transmission Stations for mobile telecommunication networks. The functioning of the said antenna was explained as a piece of metal conductor which is used to produce electromagnetic waves by application of an alternating current. On application of the alternating current, a disturbance is created in the electro-magnetic field, as a result of which electromagnetic waves are radiated. The antenna is used merely to generate the electro-magnetic waves, which is the medium through which the data is transmitted. Considering all aspects, including the Board's instructions, the Hon'ble Tribunal held that the correct classification of the antenna for base station is under sub-heading 8517 70 90 as "parts". Even though the antenna involved in the Reliance Jio Infocom case was that of a BTS, and the antennas under consideration in the present proceedings are to be used in a network architecture for providing content to television via Fire TV Stick, the similarities of functionality cannot b....
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....able connected to the ODU 2 outside the customer premise. It has two Ethernet ports, one for use as a data input and the other is meant for providing multiplexed data and power out to the end device. The applicant, however, has stated that the PoE injector proposed to be imported would be used only for powering the ODU 2 device. The two adaptors, proposed to be imported, would be used to power the IDU device. The adaptors, when plugged into a socket, would perform the function of conversion from AC voltage to DC voltage along with regulation of voltage to be supplied to end device. From the information provided, it appears that the primary purpose of the PoE Injector and the two adapters are to provide power to devices, along with conversion of the AC power supply into DC power required by the networking devices. According to the applicant, all these three devices merit classification under sub-heading 85044029. The Commissioner of Customs, Chennai is of the opinion that the PoE Injector merits classification under sub-heading 85176990, while he concurs with the applicant's views regarding classification of the adapters. The opinion of the Commissioner of Customs, ACC, Mumbai, ....
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....pplicable subheading for the POE Injector (model # IL-P0E150S), and the POE Splitter (model # TL-POE1OR) was held to be 8504.40.8500 in the Harmonized Tariff Schedule of the United States which provides for Electric Transformers, static converters(rectifiers) and inductors. Considering the nature and usage of these devices, it is my considered opinion that, as a means to provide power and to convert AC power supply to DC for usage by the devices, the proper classification of PoE Injector, and Adaptors 1 and 2 would be 85044029 as rectifiers. I also do not see any basis in the line of reasoning that classification would be different if all the devices under consideration in the present proceedings are imported together or separately. Since, I have held that the PoE Injector is not a device for reception, conversion and transmission or regeneration of voice, images, data etc., the classification of 85176990 suggested by the Commissioner of Customs, Chennai Seaport also doesn't appear to be proper. 14. Now, coming to the issue of eligibility for exemption/s, I find that the applicant has desired rulings on eligibility for benefit of Sr. No. 5 of Notification No. 57/2017-Cus., d....