TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 956
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....ferred to as 'NN 57/2017'), as amended. "Neat Pad" is a an 8" HD touch screen interface and is equipped with features such as LED side indicators, wireless sharing, Power over Ethernet (POE) and WiFi support and MIMO technology. 3 The Applicant vide their application dated 12.06.2025 has submitted as follows: 3.1 M/s. Inflow Technologies Private Limited, is a Private Limited company engaged in the import and trading of electronic products. 3.2 The applicant is proposing to import "Neat Pad". The Neat Pad is a device purpose-built for use in a meeting room environment. It features an 8" HD touch screen interface and is equipped with features such as LED side indicators, wireless sharing, Power over Ethernet (POE) and WiFi support and MIMO technology. 4 Details of the products in question submitted by the applicant 4.1 The Neat Pad comes equipped with a hardened firmware and android versions of the Zoom Room Controller app and Microsoft Teams Room Controller app pre-installed by the manufacturer. 4.2 At the time of booting up and setting up the Neat Pad device, the users shall decide whether they intend to use the Neat Pad as a Zoom configured device or a Mi....
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....Neat Pad device remains connected to the servers of the Teams/Zoom software through a wired or wireless network to achieve its functionality. 5.8 The Neat Pad needs to be connected to and communicating with the servers of the aforementioned platforms to achieve its functionality. The Neat Pad is non-functional without connection and communication with the servers. 5.9 The Neat Pad is powered through a Power over Ethernet (POE) connector in both the control and room reservation configurations and always remains switched on. 5.10 This functionality is built in as a feature into the Neat Pad to ensure that the device is connected and ready to operate at all times to facilitate meetings and meeting room availability. Alternatively, the Neat Pad can also be powered using an AC injector in the absence of ethernet. 5.11 The Neat Pad can be connected to WiFi and wired networks to ensure ease of use and accessibility. 5.12 In order to connect wirelessly via Wifi, the Neat Pad is equipped with in-built multiple antennas in WiFI module which is functioning under the Multiple Input/Multiple Output Technology (MIMO) technology. However, the Neat Pad also utilise wired network usi....
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....e Neat Pad sends commands received from the user, viz., volume, chat function, screen sharing, etc. to the connected meeting devices for controlling them in a meeting environment. (d) In the room reservation function, the Neat Pad transmits and communicates with the calendaring system of the connected software to display and reserve meeting rooms based on availability. 8. Appropriate Hs Classification Of Neat Pad As Per Applicant: 8.1 The applicant has submitted that considering the specifications of Neat Pad, the Applicant submits that it merits classification under the Customs Tariff Heading (hereinafter 'CTH') 8517 covering 'Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the 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), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528' for the following reasons: - It is a device for transmission or reception of data in a wired or wireless network. - It is conne....
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....unication in a wired or wireless network, and is not in the nature of product of any specific entries under CTSH 8517 69, and therefore classifiable under the residuary entry of CTSH 8517 69 90. 9. Further, applicant has claimed has claimed Concessional rate of Basic Customs Duty (BCD) and has in terms of SI. No.20 of the NN 57/2017, and has submitted that all goods classifiable under Customs Tariff Item (hereinafter 'CTI') 8517 62 90 or 8517 69 90 of the First Schedule (hereinafter 'Tariff Schedule') of the Customs Tariff Act, 1975 (hereinafter 'Tariff Act') other than the following goods as mentioned in the table below, are eligible for the concessional rate of BCD @ 10%: Sr. No. Heading, sub- heading or tariff item Description 20 8517 62 90 or 8517 69 90 All goods other than the following goods, namely: - (a) Wrist wearable devices (commonly known as smart watches) and other smart wearable devices including smart rings, shoulder bands, neck bands or ankle bands; (b) Optical transport equipment; (c) Combination of one or more of Packet Optical Transport Product or Switch (POTP or POTS); d) Optical Tr....
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.... and therefore, these devices cannot be called OTE and will not fall under the exclusion clause (b) of SI. No. 20 of NN 57/2017. Clause (c) - 'Combination of one or more of Packet Optical Transport Product or Switch (POTP or POTS)' c.1 These equipment are Long Distance Backbone Network equipment(s). POTP means Packet Optical Transport Products that implement the Packet Optical Transport technology. c.2 The Neat Pad is not a long distance backbone network equipment and therefore, the Neat Pad does not fall under the exclusion clause (c) of SI. No. 20 of NN 57/2017. Clause (d) - 'Optical Transport Network (OTN) products' d.1 OTN products refer to products which implement the OTN standard as specified in ITU-T G.709 i.e., output of signal generated is 10.71 Gbit/s. These products enable transparent transport of services over optical wavelengths in DWDM systems. d.2 The Neat Pad device cannot output any optical signals and therefore, the Neat Pad does not fall under the exclusion clause (d) of SI. No. 20 of NN 57/2017. Clause (e) - 'IP Radios' e.1 Radio over IP (RoIP) is similar to Voice ove....
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....pically fits at the core layer of a metropolitan transport network and backbone network. g.2 Multiprotocol Label Switching Transport Profile (MPLS-TP) products are the variant of the traditional MPLS services, wherein MPLS is defined as a routing technique which is agnostic of the type of network and network protocol being followed. MPLS-TP is a set of MPLS protocols that are being defined in IETF. Products which utilize such protocols would be considered as MPLS-TP products. g.3 The Neat Pad device is not a PTN or a MPLS-TP, and therefore, the Neat Pad does not fall under the exclusion clause (g) of SI. No. 20 of NN 57/2017. Clauses (h) - 'Multiple Input/Multiple Output (MIMO) products' h.1 MIMO is a technology wherein multiple antennae are used simultaneously for transmission and multiple antennas are used simultaneously for reception. The technology uses multiple antennae to enable a variety of signal paths to carry the data, choosing separate paths for each antenna to enable multiple signal paths to be used to provide gains in channel robustness and throughput. Besides antennae, MIMO also requires software algorithms in the network (i....
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....jurisdictional authority. 11. Details of Personal Hearing: 11.1 A personal hearing was held on 10.09.2025 at 12:30 pm Sh. Kalirajan, authorized representative appeared online for PH in the matter from the applicant side. He reiterated the submission filed with the application that the subject import goods are "Neat Pad device"- a telecommunication device to be used for scheduling, reserving and controlling online meeting and merit classification under CTH-85176990-(other) that the device uses internet connection for communication and is not freely programmable and cannot function independently. He relied upon the case laws: the matter of M/s Amazon Eco-device vs CAAR Delhi (Delhi High Court), Apple India case CAAR Mumbai vs Cross ruling-H326071 dated 25/07/2023 and other in support of their claim. He also relied upon HSN Explanatory Notes to chapter Heading 8517. He also contended that benefit of Sr. No. 20 of Notification 57/2017 customs is available to that product. Nobody appeared for PH from the department side. 11.2 The applicant has also relied upon the following case laws: i. (Hewlett Packard India Sales Pvt. Ltd. v. Commissioner of Cus., (Import), Nhava Sh....
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....itched between Zoom and Microsoft Teams functionality by resetting it to factory settings, either manually through the factory reset button or through the software option. Further, as per applicant's submission it is not possible to upload, download or use any other third party software through the Neat Pad device other than the aforementioned pre-installed applications. 12.5 I observe that that there is no specific entry is given in the Customs Tariff Act. However, once having characteristics of a communication device used to conduct, operate and control meetings, the subject goods merits classification under the Customs Tariff Heading (hereinafter 'CTH') 8517, which covers 'Telephone sets, including smartphones and other telephones for cellular networks or for other wireless networks; other apparatus for the 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), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528' for the following reasons: 12.6 Neat pad is a communication device for transmission or reception of d....
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....hony, telegraphy, radio-telephony, radio-telegraphy, local and wide area networks. Neat Pad is communication device/apparatus for the transmission or reception of speech or other sounds, images or other data and is covered by heading 8517 as per the HSN explanatory note. 12.8 In terms of the Tariff Schedule, Custom Tariff Sub-headings ('CTSH') 8517 61 to 8517 69 cover '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)'. 12.9 Further, I find that in terms of supplementary note G to the HSN Explanatory Note to heading 85.17 covers 'other communication apparatus' the said heading 85.17 includes apparatus which allows for the connection to a wired or wireless communication network or the transmission or reception of speech or other sounds, images or other data within such a network. Communication networks include, inter alia, carrier-current line systems, digital-line systems and combinations thereof. They may be inter alia configured as public switched telephone networks, Local Area Networks (LAN), Metropolitan Area Netwo....
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....SH 8517 69. and therefore classifiable under the residuary entry of CTI 8517 69 90. 14. Now I discuss whether the "Neat Pad" will be eligible to concessional rate of bed @ 10%, provided under s.no. 20 of notification no. 57/2017-customs dated 30.06.2017: 14.1 I find that in terms of SI. No. 20 of NN 57/2017, all goods classifiable under the CTI 8517 62 90 or CTI 8517 69 90 other than the exclusion mentioned in the table below, are eligible for the concessional rate of BCD @ 10%. In this regard, it is to mention that the relevant portion of the Notification is as under: - ¾[4/[20. 85176290 or 85716990 All goods other than the following goods, namely :- (a) Wrist wearable devices =[(commonly known as smart watches) and other smart wearable devices including smart rings, shoulder bands, neck bands or ankle bands; ] (b) Optical transport equipment; (c) Combination of one or more of Packet Optical Transport Product or Switch (POTP or POTS); (d) Optical Transport Network (OTN) products; (e) IP Radios; (f) Soft switches and Voice over Internet Protocol (VOIP) equipment, namely, VOIP phones, media gateways, gateway....
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....h an alpha numeric code/identifier as provided for in Annexure-2 will need to be additionally declared in bill of entry by the importer with effect from 1-4-2023. Annexure-I of the Circular No. 08/2023 dated 13.03.2023 is produced as below: Annexure -1 Notfn item Notification description Identification of products/equipment covered (b) and (d) Optical transport equipment and Optical Transport Network products Machines and apparatus covered include - i. OTN equipment: ii. Dense Wavelength Division Multiplexer (DWDM); iii. Coarse Wavelength Division Multiplexer (CWDM); iv. Elements of (i), (ii) or (iii) above: ROADM, Booster Amplifiers. Pre-Amplifiers, Inline Amplifiers, Raman Amplifiers, Mux- demux, Transponders, Mux-ponders, OADM and Regenerators, Optical Power Monitoring and Optical Line Protection equipment. (c) Combination of one on more of Packet Optical Transport Product on Switch (POTP or POTS) The Machines/apparatus covered under this category include- i. Optical Line Terminal (OLT) for FTTX (GPON/ EPON/ XGSPON/ 10GEPON/NG-PON2 /25GPON / 50GPON etc.); ii. Optical Network Terminal (ON....
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....he device supports Power over Ethernet (POE), it can also be powered powered using an AC injector in the absence of ethernet ensuring it remains always on and ready for use. 14.6 On plain reading of the NN 57/2017 dated 30.06.2017 read with Board Circular No. 08/2023 dated 13.03.2023 the subject goods 'Neat Pad' device do not appear to be the goods covered by exclusion clause covering goods mentioned at a to i of the said Notification as produced at para 14.1 .. above. Also, the Neat Pad is not the product/equipment covered by the list of products mentioned in the Column identification of products/equipment covered of Annexure-I (produced at para 14.4 above) of the Board Circular No. 08/2023 dated 13.03.2023. However, for better clarity in this regard, a letter dated 16.10.2025 addressed to joint Secretary(telecom), Department of Telecommunication, New Delhi was sent requesting to clarify whether the subject product "Neat Pad" is being covered thereunder, (b) to (h) of the CBIC Circular No. 08/2023 or otherwise. 14.7 . The Department of Telecommunication vide its reply mail dated 27.10.2025 informed as below: "it is to convey that the product under considerat....