TaxTMI 
TaxTMI 
2022 (10) TMI 328
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....y that delivers broadband network access to customers. GPON network consists of three important components, namely, Optical Line Terminal (OLT), Optical Network Terminal (ONT) and Optical Distribution Network (ODN). ONT is a broadband telecommunication terminating device installed at the customer premise. It acts as the interface with the end user's equipment. A terminal and associated equipment located at a subscriber's premises and connected to a carrier's telecommunication circuit at the demarcation point are known as subscriber end equipment. As per the applicant, subscriber end equipment is specifically mentioned in sub-heading 85176 90 50. From the product description given above, the applicant has contested, it may be observed that the item GPON ONT, being a customer premise equipment used for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network, falls within the ambit of subscriber end equipment. Therefore, the impugned product is classifiable under sub-heading 8517 69 50. Further, they are eligible for a nil rate of duty as per Sr. No. 13P of Notification No. 24/2005-Customs, dated 1-3-2005. 2.1&ems....
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.... under sub-heading 8517 69 50 Chapter 85 of the Customs Tariff Act, 1975? 3. In their CAAR-1 application, the applicant has stated that they would be importing under the jurisdiction of Principal Commissioner/Commissioner of Customs, Chennai. The application was forwarded to the jurisdictional Principal Commissioner for Customs for comments. However, no comments have been received from the jurisdictional Commissionerate. 4. The application was listed for hearing on 12-10-2021. The applicant was represented by S/Shri Jose Jacob and Antony, advocate. No one appeared on behalf of the jurisdictional Principal Commissioner. The applicant explained the product features. The applicant informed that they have imported these devices in the past through Chennai and Kochi ports. On both occasions, separate classification and rate of duty were applied. Therefore, they are seeking an advance ruling to rule out differential practices. Shri Jacob informed that there was no pending dispute with respect to these devices and that they would submit the copies of the two bills of entry. The applicant was asked to submit a product catalogue along with features, which they submitted on 18-11....
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....irements and specifications for broadband access network architectures based on Fibre-to-the-Home/Building/Curb/Cab (FTTH/FTTB/FTTC/FTTCab) commonly called FTTX architectures, using Gigabit-capable Passive Optical Network (GPON) technology. It is stated that the ONT is a system block to provide access to the users. The access node in FTTH architecture for network termination installed within user premises is termed as ONT. It further mandates that the ONT shall provide (1) User-interfaces (UNI) towards the customers and (2) Uplink (IFPON) interfaces to uplink local traffic towards an OLT. It further lists service support by ONT such as high-speed data/Internet; voice through in-built VoIP gateway; RF video; IP Video; in-built Wi-Fi support as per IEEE 802.1 lg/n/ac, etc. As per ITU-T G.984.1 (GPON general characteristics), depending upon functionalities and configurations there can be variations in ONT as described below : (a) GPON modem variant : the ONT is made as small and simple as possible. In this case, it resembles a modem that provides Layers 1 and 2 interworking between the GPON optical interface and the data link technology. The data link then carries all service ....
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....tures like NAT, firewall, VLAN, IEEE 802.1p QoS, etc. These features help the device perform Wi-Fi routing functions. Routers are covered under sub-heading 8517 62 90. However, the impinged device is more than a combination of a modem and a router. ONT has a User Network Interface (UNI) depending on which services are provided by the service operator. It also possesses Uplink (IFPON) interfaces to uplink local traffic towards an OLT. ONT management and control system (OMCI) allows a service provider to provide a diverse number of applications and services utilizing the PON, including voice, video, and data. The impugned device has an integrated OMCI remote configuration and maintenance functionality. It also supports bridging. Therefore, this device cannot be considered as a mere combination of a modem and a router. It is a device performing varied functions and is located at the customer's premises. The applicant has proposed a classification of impugned devices as subscriber end equipment. Subscriber end equipment, as covered under sub-heading 8517 69 50, is any terminal and associated equipment located at a subscriber's premises and connected with a carrier's telecommunication ....
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....ibute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function. This Note applies when a machine (including a combination of machines) consists of separate components which are intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or, more frequently, Chapter 85. The whole then falls to be classified in the heading appropriate to that function, whether the various components (for convenience or other reasons) remain separate or are interconnected by piping (carrying air, compressed gas, oil, etc.), by devices used to transmit power, by electric cables or by other devices. As discussed, the impugned good is a combination of devices performing different tasks which are intended to contribute together to a clearly defined function covered by sub-heading 8517 69 50. Accordingly, the appropriate classification for said goods is under Tariff Entry 8517 69 50. 5.4 In respect of applicability of the exemption notification, Sr. No. 13P of the Notification No. 24/2005-Customs as amended exempts the goods specifi....