TaxTMI 
TaxTMI 
2005 (11) TMI 94
X X X X Extracts X X X X
X X X X Extracts X X X X
....ation apparatus. According to the applicant, the goods are classifiable under sub-heading 8517 50 which reads "other apparatus, for carrier-current line systems or for digital line systems". They have suggested that the proper classification would be under Tariff Item 8517 50 99. Copies of the rulings issued by UK Customs, USA Customs and Australian Customs have also been enclosed along with the application, all of whom have classified this product under tariff sub-heading 8517 50. The designated Commissioner, namely, the Commissioner of Customs, Air Cargo Exports, New Custom House, IGI Airport, New Delhi (hereinafter to be referred to as "the Commissioner") in his comments has, however, expressed the view that the classification of this item would be under Tariff Item 8543 89 79 on the ground that the repeater is an amplifier having an independent function and is not covered more specifically by a heading of any other Chapter of the Nomenclature, nor is it excluded by the operation of a legal note of Section XVI or to the Chapter 85. The Tariff Item 8543 89 79 would therefore be the appropriate classification of the repeater under consideration as a high or intermediate frequen....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... that any decline in the output of one pump unit can be compensated by an increase of output from the other." 5. While giving their response to the comments of the Commissioner, the applicant has reiterated the technical information already supplied as annexure to the application and has contended that the function of repeater is to amplify the signal for transmission in a local/wide area network. It is not an independent unit but is part of the transmission chain. It has been further submitted by them that the classification of repeaters was discussed at the World Customs Organization and it was agreed that repeaters for local area networks would properly fall under Heading 8471 while repeaters for wide area networks are classifiable under the Heading 8517. Furthermore, the Schedule submitted by India to the World Trade Organization in respect of ITA (Information Technology Agreement) clearly indicates that these products are classified under Heading 8517. The applicant has also submitted that the rulings already issued in other countries are based on the common understanding/principles of the World Customs Organization of which India is a member. Though they appreciate that th....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... must have individual function and (c) it must not be specified or included elsewhere in Chapter 85. The HSN Explanatory Notes to Heading 8543 provide inter alia that :- "The electrical appliances and apparatus of this heading must have individual functions. The introductory provisions of Explanatory Note to Heading 84.79 concerning machines and mechanical appliances having individual functions apply, mutatis mutandis, to the appliances and apparatus of this heading. Most of the appliances of this heading consist of an assembly of electrical goods or parts (valves, transformers, capacitors, chokes, resistors, etc.) operating wholly electrically. However, the heading also includes electrical goods incorporating mechanical features provided that such features are subsidiary to the electrical function of the machine or appliance". The introductory provisions of Explanatory Note to Heading 84.79 explains what has to be regarded as having "individual functions". The following two categories have been indicated therein :- "(A) Mechanical devices, with or without motors or other driving force, whose function can be performed distinctly from and independently of any other ma....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nbsp; --- --- --- --- ---- ---" 8. As per the technical information provided by the applicant the product in question is a hybrid of optical, electronic and mechanical systems. The mechanical characteristics, the electrical characteristics and the electro-optic characteristics have been separately narrated in the technical write up submitted by the applicant. It has been indicated under the heading "Amplifier electro-optic characteristics" that the transmission of aggregate data within the Alcatel Repeater is a telecommunication function supported by the following parts : (i) Optical amplifiers (ii) Amplifier automatic level control (iii) Pump control (iv)  ....