TaxTMI 
TaxTMI 
2025 (12) TMI 830
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....relevant facts having a bearing on the question(s) on which advance ruling is required: 1.1 Rohde & Schwarz India Private Ltd (hereinafter referred to as the "Applicant") is a 100% owned subsidiary of Rohde & Schwarz GmbH KG & Co, Germany, whose head office is located in New Delhi and branch offices in Bangalore, Hyderabad and Mumbai. 1.2 The Applicant is a leading supplier of solutions in the fields of Test and Measurement, Broadcasting, Radio monitoring and Radiolocation as well as Mission-critical Radio communications. For more than 80 years, Applicant has been developing, producing and marketing a wide range of electronic products. 1.3 The Applicant submit that they have been importing R&S(r) CMA 180 Radio Test Set in the past under CTI 9030 89 90. 1.4 The certificate of Importer Exporter Code (IEC certificate) of the Applicant is enclosed with the application. Copy of product catalogues and manuals of the R&S(r) CMA 180 Radio Test Set. are herewith collectively enclosed. 1.5 About the R&S(r) CMA 180 Radio Test Set in question 1.5.1 The R&S(r)CMA180 Radio Test Set is a radio communication tester for production testing and maintenance testing of radio transmitt....
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....re used in testing in all kinds of wireless communications including, radio and cellular communications. 1.5.5. The Applicant also submits that, as the R&S(r)CMA180 Radio Test Set is capable of operating in the 100 kHz to 3 GHz range thereby having applications in the two-way mobile radios, RFID devices, mobiles, tablets etc. 1.6. About Radio Testing Equipments in general 1.6.1. In general, the Radio Testing Equipments are used in testing transmission and reception of radio communication equipment, measurement and analysis on feature parameters of both analog and digital radios. These are used in testing user devices such as smart phones, tablets and IoT devices. 1.6.2. In this regard, the Applicant submits that from the guidelines dated 16.04.2024 on Qualitative Requirements of Radio Test Set issued by Department of Telecommunications to CRPF, Delhi, the following parameters shall be met with by a Radio Testing Equipment. QRs/TDs of Radio Communication Test Set (ANALOG/DIGITAL) Radio Communication Test Set (ANALOG/DIGITAL) should consist of following :- 1. RF Signal Generator 2. RF Power Meter 3. Audio Frequency Counter 4. SINAD Meter 5. Distortion....
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....hat the Spectrum Analysers in question are used by such operators who would want to undertake frequency, amplitude, harmonics and noise measurements in various fields including radio receiving, telecommunications etc. Statement containing Applicant's interpretation of law and/or facts, as the case may be, in respect of the question(s) on which advance ruling is required 1.8. APPLICANT'S ELIGIBLITY FOR ADVANCE RULING: 1.8.1. In order to file an application before the Authority for Advance Rulings, the Applicant must satisfy the conditions prescribed under the Customs Act, 1962 (hereinafter referred to as 'Customs Act'). 1.8.2. The Provisions related to Advance Ruling are prescribed under Chapter VB of the Customs Act. Clause (c) of Section 28E of the Customs Act defines an "Applicant" as :- In this chapter, unless the context otherwise requires- (c) "applicant" means- i. Holding a valid Importer Exporter Code Number granted under section 7 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992); or ii. Exporting any goods to India; or iii. With a justifiable cause to the satisfaction of the Aut....
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.... (b) The question of classification of R&S(r)CMA180 Radio Test set in the present application is not pending in the applicant's case before any officer of customs, the Appellate Tribunal or any Court and has never been decided by the Appellate Tribunal or any Court; (c) The application for advance ruling is in relation to clause (a) of Section 28H (2) of the Customs Act. ISSUE REQUIRING ADVANCE RULING 1.9. The questions on which advance ruling is sought are as follows- a. Whether the R&S(r)CMA180 Radio Test set indicated in the Application are rightly classifiable under CTI 9030 40 00? b. If the answer to the above question (a) is in the negative, then, what is the appropriate classification of the R&S(r)CMA180 Radio Test set under Schedule I to the Customs Tariff Act, 1975 (hereinafter referred to as 'the Tariff Act')? CLASSIFICATION OF R&S(r)CMA180 RADIO TEST SET 1.10. Application of GI Rules and relevant Section Note 1.10.1. Classification of the goods mentioned in the First Schedule of the Import Tariff is governed by General Rules for Interpretation (hereinafter referred to as 'GI Rules'). The said rules for inter....
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.... Spectrum Analyser. Further, in terms of HSN Explanatory Notes to Heading 9030, it can be seen that the Heading not only covers such electrical apparatus for testing voltage, current etc., but also such electrical or electronic instruments used in radio communications or telecommunications. The relevant portion from the HSN is reproduced hereunder. "Some electrical measuring instruments can be used for many purposes, for example, electrical or electronic instruments known as "universal testers" (e.g., multimeters) which serve for the rapid measurement of voltages (direct or alternating), currents (direct or alternating), resistances and capacitances. The heading also includes a wide range of electrical or electronic instruments used in radio-communications or telecommunications. In addition to the voltmeters, potentiometers, measuring bridges, ammeters, wattmeters, phase meters and frequency meters already mentioned, this range includes (iii) Nepermeters and decibel meters. These are used for measuring the attenuation over long distance telephone circuits. Instruments and apparatus for measuring quantities of sound fall in heading 90.27. (iv) Fad....
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....telecommunication". Reliance in this regard is placed on definition of term "telecommunication" under The Indian Telegraph Rules, 1951. The Indian Telegraph Act, passed in 1883, was intended to give the Central Government power to establish telegraph lines on private as well as public property. In terms of Rule 2(rr) of The Indian Telegraph Rules, 1951, the term "telecommunications" is defined as follows. (rr) "Telecommunication" means any transmission, emission or reception signs, signals, writing, images, sounds of intelligences of any nature, by wire, radio, visual or other electromagnetic system; 1.17. Therefore, even though the R&S(r)CMA180 Radio Test Sets are used for testing of analog and digital radio signals, the goods must be treated as apparatus specially designed for telecommunications. 1.18. The above classification is also supported by US CROSS Ruling HQ H096888 dated 08.06.2010 wherein, E8257D-UNY model microwave analog signal generator of Agilent Technologies Inc. was held to be classifiable under CTI 9030 40 00. The specific question as to whether communication in the apparatus which works on 'radio frequencies' was put forth before the Autho....
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....ommunications" within the meaning of subheading 9030.40, HTSUS. The E82570-UNY is also specially designed to conduct specific tests of telecommunications products, including phase noise, level accuracy, jitter clock, and adjacent channel selectivity, among other things. .. Furthermore, given the evolution in technology in radar and the E8257D-UNY's other capabilities into telecommunications functions, we agree that the subject merchandise is specifically designed for telecommunications. The definitions of the term cited above are broad enough to encompass the functions of the subject merchandise. As a result, the E8257D-UNY is classified in subheading 9030.40.00, HTSUS, as an "Other instrument and apparatus, specially designed for telecommunications." HOLDING: By application of GRI 1 and 6, the microwave analog signal generator is classified in heading 9030, HTSUS, and specifically under subheading 9030.40.00, HTSUS". 1.19. Thus, the Advance Ruling Authority in the said Ruling held that the apparatus in question which is a Microwave analog signal generator designed to test advanced RF and microwave radar systems, communications systems, and control systems ....
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....Champdany Industries Ltd. [2009 (241) ELT 481 (SC)]. Therefore, the Applicant submits that as the R&S(r) CMA 180 Radio Test Sets specially designed for telecommunications, their classification under CTI 9030 40 00 as "instruments and apparatus, specially designed for telecommunications " is justified. Therefore, the R&S(r) CMA 180 Radio Test Set is not classifiable under CTI 9030 89 90 which is a residuary entry. ISSUES REQUIRING ADVANCE RULING AND APPLICANT'S UNDERSTANDING 1.23. In the light of the aforementioned, the Applicant seeks to enter the following questions for Advance Ruling and its interpretation of the question will be as under: Question 1: Whether the R&S(r) CMA 180 Radio Test Set is classifiable under the CTI 9030 40 00 of the Customs Tariff of India? Question 2: If the answer to the above question I is in the negative, then, what is the appropriate classification of these R&S(r)CMA180 Radio Test sets under the Tariff Act? 1.23.1 Applicant's Understanding: R&S(r) CMA 180 Radio Test Set are correctly classifiable under CT1 9030 40 00 as "apparatus specially designed for telecommunications". 2. Comments of Customs Port Commissioner....
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....evice do not have any specific function which has been described as per the description of CTH 9030 4000, the device could not be classified in the said CTH based on the function alone. 2.2.9. The applicant also compares the device to spectrum analysers, channel leakage ratio measurement and harmonic distortion measurement which all merit classification under different headings. 2.2.10. Further, as per CTH 9030 4000, only those instruments and apparatus which are specifically designed for telecommunications namely cross-talk meters, gain measuring instruments, distortion factor meters and psophometers are classified in the CTH. 2.2.11. As the instrument can perform more than one function which merits classification in various headings and no specific heading had been provided to radio test equipment in CTH 9030, the device is most appropriately classifiable under CTH 9030 8990. Further, the competent authority may decide the case on merit. 2.3. With reference to the aforementioned application No-69/2025 for the subject advance ruling, the port comments are as under: 2.3.1. The applicant sought ruling Section 28 H of the Customs Act, 1962 in respect of goods described....
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....he appropriate classification of the R&S(r)CMA180 Radio Test set under Schedule I to the Customs Tariff Act, 1975 (hereinafter referred to as 'the Tariff Act')? 2.3.8. The applicant argued that the R&S CMA180 Radio Test Set's functionality as a Spectrum Analyzer and its use in testing telecommunication parameters, it is classifiable under Heading 9030. This heading specifically covers spectrum analyzers and other instruments for measuring or checking electrical quantities, including those used in radio communications and telecommunications, as supported by the HSN Explanatory Notes. 2.3.9. It is further stated that the R&S CMA180 Radio Test Set is used for testing analog and digital radio systems, covering a frequency range of 100 kHz to 3 GHz. Its features, such as measuring adjacent channel leakage ratio and signal-to-noise ratio, make it suitable for the telecommunications industry. The product is supplied to prominent companies like Bharat Electronics and Airports Authority of India for testing telecommunication parameters. Based on its functionality, it is classifiable under CTH 90304000 as an apparatus for measuring/checking electrical quantities in telecomm....
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....est Set might overlap with other instruments or apparatus covered under CTI 90308990, making classification under the residuary entry plausible. 2.3.16. Although primarily used in telecommunications, the R&S CMA180's functionality might be applicable to other industries, potentially affecting its classification. The device's ability to measure various parameters might lead to classification based on its broader capabilities rather than solely its use in telecommunications. The said Radio Test Set can classify based on its primary function as a testing device, rather than its specific application in telecommunications. The device's technical specifications, such as its frequency range, might align more closely with other classification entries. 2.3.17. The E8257D-UNY microwave analog signal generator and the R&S CMA180 Radio Test Set might have distinct functionalities, making the comparison imperfect. US Customs Rulings might not directly apply to other jurisdictions, and classification rules can differ between countries. The primary function of the R&S CMA180 might be considered more general (e.g., testing and measurement) rather than specifically designed for te....
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....M, SSB, DMR, APCO P25, dPMR, NXDN, TETRA, LTE/FirstNet, WLAN and Bluetooth(r)- ARB and vector analysis (R&S VSE) Max. input power 100 W (cont.) | 150 W (1 min.) Signal level for receiver measurements power can be lowered to - 140 dBm Generator phase noise 110 dBc/Hz or better at 10 kHz offset I/Q recorder min. sample rate 500 Hz, up to 64 Msample ARB Generator 4Gbyte Avionics ILS, VDR, MB Generator, VoIP vi. From the submission, it is observed that the item incorporates a signal generator and the same is submitted by the applicant as ARB generator as key specifications, and the item is capable of digital signal processing and advanced computing. vii. Based on the above submissions, the items appear to cover under the CTH 9030 which corresponds to "Other Instruments and apparatus for measuring or checking electrical quantities. For the ease of reference, relevant portions of the CTH are produced below: 9030 OSCILLOSCOPES, SPECTRUM ANALYSERS AND OTHER INSTRUMENTS AND APPARATUS FOR MEASURING OR CHECKING ELECTRICAL QUANTITIES, EXCLUDING METERS OF HEADING 9028; INSTRUMENTS AND APPARATUS FOR MEASURING OR DETECTING ALPHA, BETA, G....
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.... ix. In the instant case, the importer intends to classify the items under "_" that corresponds to "other instruments and apparatus, specially designed for telecommunications (for example, cross-talk meters, gain measuring instruments, distortion factor meters, psophometers)" under CTI 9030.40.00 On perusal of the terms of sub-heading for the CTI 9030.40.00, it can be noted that the CTI has an exclusionary description which limits to the goods being specially designed for telecommunications and not for any other purposes, including those apparatus which can perform multiple functions in telecommunications and other areas. x. The applicant in their application has not provided sufficient evidence to establish that the item is specially designed for telecommunication and they themselves had submitted that and are used in all kinds of wireless communication including radio and cellular communications. xi. The items have multiple features such as signal generation, signal measuring and signal processing. Therefore, the items appear to be more appropriately covered under corresponding "Other instruments and apparatus", and appears rightly classifiable under CTI 9030....
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....nt as ARB generator as key specifications, and the item is capable of digital signal processing and advanced computing. 2.5.9. The CTI 90304000 is reproduced below: 9030 Oscilloscopes, spectrum analysers and other instruments and apparatus for measuring or checking electrical quantities, excluding meters of heading 9028; instruments and apparatus for measuring or detecting alpha, beta, gamma, X-ray, cosmic or other ionizing radiations 90304000 Other instruments and apparatus, specially designed for telecommunications (for example, cross-talk meters, gain measuring instruments, distortion factor meters, psophometers) 2.5.5. The description of goods under CTI 90304000 specifically mentions the word "specially designed". The CTI is an exclusionary description which limits to the goods being specially designed for telecommunications. 2.5.6. As the goods have multiple features such as signal generation, signal measuring and signal processing it appears rightly classifiable under CTH 903089 under CTI 90308990. 2.5.7. Further the applicant has not provided sufficient evidence to establish that the item is specially designed for telecommuni....
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....cation" in the Customs Tariff or HSN Explanatory Notes. Therefore, reliance is placed on the definition in cognate legislations which deals telecommunications and related regulatory aspects. 4.5. In this regard, it is submitted that the term "telecommunication" has been defined under The Indian Telegraph Rules, 1951 (Page No 27). These Rules have been prescribed under The Indian Telegraph Act, 1885. In terms of Rule 2(rr) of The Indian Telegraph Rules, 1951, the term "telecommunications" is defined as follows. (rr) "Telecommunication" means any transmission, emission or reception signs, signals, writing, images, sounds of intelligences of any nature, by wire, radio, visual or other electromagnetic system; 4.6. Further, the Applicant submits that as per the "Telecommunications Act, 2023," that has come into existence after repealing Indian Telegraph Act, 1885, and the Indian Wireless Telegraphy Act, 1933, the term radio equipment has been defined to mean a telecommunications equipment used by means of radio and the term "telecommunication" has been defined to mean transmission and reception of any messages by inter alia "wire" or via "radio" systems. The relevant defi....
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....pecifically describes telecommunication can be divided into two categories. In terms of technology, telecommunications transmission systems are divided into Line transmission and radio transmission systems: * Line transmission is the technology of sending and receiving electrical signals by means of copper wire, and nowadays, increasingly by means of optical fiber, on overhead lines, by underground cable, and by submarine cables. * Radio transmission in the context of telecommunications stands for the technology of information transmission on electromagnetic waves by means of high-frequency radio and mobile radio, including cellular radio systems, radio relay, and satellites. 4.11. Thus, the Applicant submits that both line transmission and radio transmission are covered under the category of "telecommunications" only. Further, as per the "telecommunication tree" available in the book, the various modes of communications including inter alia radio and optical transmission are covered under the category of "telecommunication". The relevant portion from the Book is extracted below. 4.12. Thus, the Applicant submits that merely for the reason that the R&S(r) CM....
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....n a digital modem in a wireless communication system. An actual frequency response of components in the wireless communication system contributing to distortion is determined. iv) Psophometers- As per International Telecommunication Union on "Psophometer for use on telephonic circuits", psophometers to be used for the measurement of noise and other interfering signals on international telephone circuits and circuit sections. 4.15. Thus, the Applicant submits that the scope of coverage of instruments under CTI 9030 40 00 not only covers line telecommunications but also radio communications. 4.16. The Applicant in this regard has enclosed the Tax Invoices pertaining to supply of the R&S(r) CMA 180 Radio Test Set to various consumers viz., Hindustan Aeronautics Limited, Bharat Electronics Ltd, Verdure RF technologies Ltd, Kerala State electronics Development Corporation Limited, ETE Solutions India, Captronic Systems Private Limited. 4.17. Further, the Applicant submits that R&S(r) CMA 180 Radio Test Set the has the following application. Instrument model Application Area CMA180 Radio Test Set Radio Test set eg: Motorola, Kenwood, ATC radios 4.18. Ther....
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.... under the residuary CTI 9030 89 90 as "other" instruments and apparatus of heading 9030. Thus, I find that the dispute is confined to the 8-digit level within heading 9030. 5.4. It is settled principle of law that the classification of any good under Customs Tariff Act, 1975 is governed by the General Rules for the Interpretation of the Import Tariff. Further, Rule I of GRI stipulates that "classification shall be determined according to the terms of the headings and any relative Section or Chapter Notes." It is only when the headings and notes do not require otherwise that one may proceed to the subsequent rules. Therefore, the starting point is an analysis of the terms of the competing headings, 9030 89 90 and 9030 40 00, read with the relevant chapter/Section notes. For the purpose of determining the correct classification of the impugned goods, it is imperative to examine Tariff Headings 9030 89 90 and 9030 40 00 in the proper context and statutory framework. The said tariff headings under the First Schedule to the Customs Tariff Act, 1975, reads as under: Other instruments and apparatus, for measuring or checking voltage, current, resistance or p....
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....nnot claim different heading. 5.6. I have examined contention of both sides and find that heading 90.30 covers "oscilloscopes, spectrum analysers and other instruments and apparatus for measuring or checking electrical quantities .... " Within this heading, CTI 9030 40 00 reads "other instruments and apparatus, specially designed for telecommunications (for example, cross-talk meters, gain measuring instruments, distortion factor meters, psophometers)". I find that there are no special Section/Chapter Notes that displace the plain text for this dispute; therefore, the phrase "specially designed for telecommunications" is the controlling criterion at the 8-digit level classification. 5.7. To ascertain the scope further, I have also examined the issue in light of the HSN Explanatory Notes to heading 90.30. The Explanatory Note clarifies that, beyond generic electrical meters, the heading includes a wide range of instruments used in radiocommunications/telecommunications, and it lists representative telecom test instruments (e.g., cross-talk meters, nepermeters/decibel meters, transmission level indicators, fading indicators, noise level meters, gain measuring instruments, psoph....
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....#39;exclusive use' is misplaced. The Courts and Customs authorities internationally, including U.S. CBP rulings on advanced RF signal generators as quoted by the applicant have held that "specially designed for telecommunications" encompasses equipment whose main design and intended application is in telecom, even if they incorporate ancillary or general functions. Thus, I find force in argument of the applicant. 5.10. I find that it is a settled principle that a specific description of tariff entry prevails over a residuary description. The Supreme Court has consistently held that classification under a residuary entry should be the matter of last resort and cannot be adopted where a specific entry covers the goods (as ruled in case of Hindustan Poles Corporation v. CCE [2006 (196) ELT 400 (SC)]; CCE v. Pioneer Scientific Glass Works [2006 (197) E.L.T. 308 (S.C.)]; Champdany Industries Ltd. [2009 (241) ELT 481 (SC)]. I find that though these cases concern different headings, the ratio of the judgements is applicable in the present case as the product fits the specific tariff text, recourse to "other" is impermissible. 5.11. I have also examined the department's obser....