TaxTMI 
TaxTMI 
2025 (7) TMI 1213
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....ting numerous products into India and is also engaged in the manufacturing of the said products in India. One such product which the Applicant has been importing into India are PLC Splitters. 2.2 About the product 'Splitters': The applicant submitted that Splitters, also called Planar Waveguide Circuit splitter, is a device used to divide one or two light beams into multiple light beams uniformly - It is a passive optical device with many input and output terminals. A diagrammatic representation of a Splitter is reproduced herein as under - 2.2 The applicant further submitted that PLC Splitter is an Optical Passive Components that split the fiber optic light into several parts by the prescribed equal ratio. The simplest couplers are PLC Splitters. These devices possess at least three ports but may have more than 32 for more complex devices. The Applicant submitted that they import the following types of splitters, namely: 2.3 The applicant submitted that PLC Fiber Optic Splitters can be categorized by the PLC splitter chip they use, meaning there are 1xN and 2xN PLC splitters, such as 1x4 splitter, 1x8 splitter, 1x16 splitter, 2x32 splitter, 2x64 PLC splitters, etc. Users ....
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....r 8528". Relevant portions of the Customs Tariff and the HSN Explanatory Notes is extracted here-under for ease of reference: Heading 8517 (w.e.f. 1.05.2023) 8517 TELEPHONE SETS, INCLUDING SMARTPHONES AND OTHER TELEPHONES FOR CELLULAR NETWORKS OR FOR OTHER WIRELESS NETWORKS: OTHER APPARATUS FOR THE TRANSMISSION OR RECEPTION OF VICE, IMAGES OR OTHER DATA, INCLUDING APPARATUS FOR COMMUNICATION IN A WIRED OR WIRELESS NETWORK (SUCH AS A LOCAL OR WIDE AREA NETWORK), OTHER THAN TRANSMISSION OR RECEPTION APPARATUS OF HEADING 8443, 8525, 8527 OR 8528 *** *** - Other apparatus for transmission or reception of voice, images or other data, including apparatus for communication in a wired or wireless network (such as a local or wide area network): *** * 851762 -- Machines for the reception, conversion and transmission or regeneration of voice, images or other data, including switching and routing apparatus: *** *** 85176290 --- Other 851769 --- Other: *** *** 85176990 --- Other - Parts: *** *** 851779 -- Other: ....
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....e function of reception, conversion and transmission, cumulatively of data/signals. Thus, only if the machine is for the reception, conversion and transmission, will it be classified under Tariff sub-heading 8517 62. They submitted that the product will not be covered under this sub-heading as it does not convert data/signals from one form into another form. All that the product does is splits the signal it receives into different fiber channels. It is a passive element and all that it does is split the signals into a number of channels depending on the output ratio. 3.5 The applicant referred to the decision of COMMISSIONER OF CUSTOMS (IMPORT) MUMBAI VERSUS M/S RELIANCE JIO INFOCOM LTD, 2019 (11) TMI 451 - CESTAT MUMBAI in this context wherein the Tribunal held that the Antennae in question does not perform functions like conversion or regeneration of voice, image etc. Therefore, the Antenna stand alone cannot be considered as a 'machine', attracting classification under Heading 8517.62 and is therefore classifiable as Parts under CSH 85177090 (now CSH 85177990). The applicant submitted that therefore, at the outset itself, the product in question will not get classified under ....
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..... 3.9 The applicant submitted that the product in question is only a passive element which only does the function of splitting the signals. It does not perform any other function and cannot therefore be construed as a compound instrument or a series of instrument. Thus, the product in question is not an apparatus of the kind contemplated to be classified under the Tariff sub-heading 851769. 3.10 The product is not an apparatus for 'Transmission or Reception': The applicant submitted that the term 'Transmission' or 'reception' has not been defined under the Customs Tariff. The meaning of the term as per various dictionaries is reproduced herein as under: Dictionary Meaning of the term 'Transmission' Cambridge Dictionary the process of sending something, for example gas or electricity, from one place to another: Brittanica the act or process of sending electrical signals to a radio, television, computer, etc. 3.11 The applicant submitted that thus, the term, transmission contemplates movement from one point to another. An apparatus for transmission thus contemplates devices which is capable of transmitting data or image from one to another point. It certain....
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....plitters play a vital role. It facilitates the process of transmission or reception of data by splitting the signals in the manner as required. Therefore, it is undisputed that it is a part of transmission or reception apparatus. They further submitted that the Classification of parts under Chapter 84 and 85 is governed by Section Note 2 to Section XVI. The relevant portion of Section XVI is reproduced herein as under - Section XVI to Chapter 84 NOTES: ... ... ... ... ... ... ... ... ... 2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) are to be classified according to the following rules: (a) parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) are in all cases to be classified in their respective headings; (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are ....
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....his decision has been affirmed by the Supreme Court of India at Principal Commissioner of Customs (Import) Versus M/s Ciena Communications India Pvt. Ltd., 2025 (1) TMI 492 - SC Order. 3.16 The applicant further relied on the case of CC V. Reliance Jio Infocomm Limited, 2022 (8) TMI 76 - CESTAT Mumbai wherein it has been held that SFP modules capable of connecting to any computer or ethernet switch are to be treated as parts of I/O card module of Ethernet switch apparatus and is therefore classifiable under Tariff Item 8517 70 90. The above classification was on the ground that the module cannot operate on its own in a stand-alone mode because it lacks power (provided by the chassis), switching capability (provided by the fabric through the mid-plane) and the control plane for decision of switching/routing packets between ports. This decision has been affirmed by the Supreme Court of India at Commissioner of Customs (Import) Versus M/s. Reliance Jio Infocomm Ltd., 2023 (1) TMI 1297 - SC ORDER. 3.17 The applicant submitted that applying the same rationale, the product in question is nothing but a part of the network equipments /machines classifiable under the Heading 85.17 of ....
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....bject goods i.e. PLC Splitter are parts of the goods falling under CTH 8517 and do not have independent functions, and therefore, merits classification as parts under Heading 8517, and more particularly under 85177990. They also relied upon HSN Explanatory Note to the Section XVI Note 2(b) and relied upon Case Laws - 2024 (1) TMI (683) CESTAT (Mumbai) in the case of M/s. Cienna Communications India Pvt. Ltd. Vs. Principal Commissioner of Customs (Import), Mumbai; 2024 (7) TMI (561) - CESTAT (New Delhi) in the case of Vodafone Idea Limited Vs. Principal Commissioner of Customs, New Delhi; 2024 (7) TMI (1409) CESTAT (New Delhi) in the case of Samsung India Electronics Pvt. Ltd. Vs. Commissioner of Customs, New Delhi. The department has also vide its letter dated 16.06.2025 opined the classification under CTH 8517 and more specifically under CTI 85177990. They requested to keep the ruling confidential. Noone appeared for the hearing from the departments side. 6. Discussions and Findings 6.1 I have considered all the materials placed before me in respect of the classification of subject goods. I have gone through the submissions made by the applicant during the personal hearin....
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....f 2021 Splitter/Coupler and other products for OTN equipment Classifiable under 8517 70 as "Parts" 3 Vodafone Idea Ltd. Final Order No. 55949/2024 of the Tribunal dated 01.07.2024 in Customs and Appeal No. 51166 of 2020 Transponder, Muxponder and Optical Splitter Cards Classifiable under 8517 70 as "Parts" 6.6 I have gone through the above-mentioned orders of the Tribunals. I find that the functionality of the PLC Splitter aligns closely with the passive telecom components examined in the following rulings: • Cienna Communications. Order of the Tribunal dated 18.12.2023 in Customs Appeal No. 86992 of 2021: The product Splitter/Coupler considered under this order is described as a passive device used to split the optical power and transmit to two adjacent optical fibres. • Vodafone Idea Ltd. Order of the Tribunal dated 01.07.2024 in Customs Appeal No. 51166 of 2020: The product Optical Splitter Cards debated under this order are described as a passive component which splits a single optical input into multiple optical output and works in conjunction with the other components or cards deployed in the optical transport network equipment c....