TaxTMI 
TaxTMI 
TaxTMI 
2025 (12) TMI 1405
X X X X Extracts X X X X
X X X X Extracts X X X X
....ct'). 1.1 The applicant's submissions are as given below :- 1.2 We Hewlett Packard Enterprise India Private Limited ('HPE' or 'the Applicant" or "the Company'), having registered office at Sy-192, Hewlett- Packard Enterprise, Whitefield Road. Mahadevapura, Bengaluru Karnataka, India - 560048. are a company engaged in trading, importing, and selling of networking hardware, enterprise solutions and other high-technology services and products. 1.3 To undertake its business activities, the applicant is engaged in regular import of goods into India since the year 2015. The applicant is major importer & seller of B2B enterprise grade communication solutions and is providing scalable technology solutions to its customers. Amongst various enterprise grade communication products imported by the applicant, small form factor Pluggable (SFP) transceivers modules are one of the products. Currently, SFP Transceivers modules hereinafter referred to as 'Product under consideration'/'Product') is being imported by the applicant under Tariff Entry 8517 62 90 of the Customs Tariff as "other machines for the reception, conversion and transmission or reg....
X X X X Extracts X X X X
X X X X Extracts X X X X
....haul telecommunications and data center interconnects. * Category E: Direct attach copper cable with SFP transceiver module 1.7 It is humbly submitted that these transceiver modules operate at different speed. HPE imported transceiver modules support data transfer rate of 10 GBPS, 25 GBPS, 40GBPS, 100 GBPS & 200 GBPS. To summarize, the higher the number, the faster the data can be transmitted, which is crucial for modern, high-bandwidth networks. The choice between different speed rate such as 10G and 25G typically depends on the specific needs of the network in terms of performance, cost, and scalability. 1.8 It is also emphasized that these transceiver modules imported by the applicant are proprietary of the Original Equipment Manufacturer (i.e., these transceiver modules are not cross compatible with devices of other manufacturers). e.g., a transceiver manufactured by HPE would be usable only in a HPE networking switches and nowhere else. 1.9 Based on the above submissions, the applicant submits that although the transceiver modules imported by the applicant are designed for different fiber types and form factors, the function of the transceiver modules remains....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ived into electric signal which enable scalability and allows network operators to incrementally increase the capacity or modify network configurations without replacing entire units. 1.14 Basis the above submissions, applicant submits that even though the transceiver modules are used by the applicant in multiple telecom equipment's using different technologies, whereas the function of the transceiver module is same. 1.15 These imported transceiver modules are compact, hot-pluggable network interface module used in high-bandwidth data communications applications. Transceivers interface between networking equipment (switch) and interconnecting cabling (copper/fiber). Transceiver modules converts the serial electrical (ethernet) signals to serial optical signals and vice versa. A brief of the characteristics and functions of the transceiver modules is herein summarized below for easy reference: ✓ SFP transceiver modules facilitate high-speed communication between switches and other enterprise grade networking equipment. They are used with copper or fiber optics cable. SFP's are used for various types of communication networks to interface network devices....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tionality of transport, multiplexing, switching, management, supervision, and survivability of optical channels carrying client signals, whereas transceivers cannot perform such functions. To reiterate, it cannot even function independently on its own. 1.18 In other words, transceiver modules are not capable of performing their specific functions independently and execute their tasks of converting without external assistance and the fact they need to be inserted into a networking switch, primarily change their functional independence. 1.19 There are two types of transceivers, optical and electrical, which perform essentially the same function, except that optical transceivers convert optical signals to electrical signals and vice versa, while electrical transceivers convert one format of electrical signal to another format of electrical signal (usually Ethernet electrical signal to a signal recognized by the host). 1.20 The applicant has been importing the product under consideration and classifying the same under tariff sub-heading 8517 62 90. In respect of the previous clearances of the said goods, the applicant has not received any pre-consultation notice, show cause no....
X X X X Extracts X X X X
X X X X Extracts X X X X
....een accepted by the Department- Revenue (See order dated 25.01.2017 passed by Commissioner of Customs and Central Excise (Appeals), Hyderabad). 3. In view of the aforesaid fact, the civil appeals are dismissed. 4. Pending applications stand disposed of." 1.24 Further reliance is place on the judgement of the Hon'ble CESTAT Mumbai in the matter of IBM India Pvt Ltd., Customs Appeal No. 85855 of 2022 having Final Order No. A/85426/2024 (2025) 27 Centax 54 (Tri .- Bom), have also held that Small Form-factor Pluggable Optical Transceiver (SFP Transceiver), to link switch/router devices to network, are classifiable under Tariff Item 8517 70 90 as 'other parts' and not under Tariff Item 8517 62 90, and eligible to exemption under Sr. No. 5(a) of Notification No. 57/2017-Cus., dated 30-6-2017. For ease of reference, the relevant paragraph of the aforementioned case is provided below: "10. In view of the foregoing discussions and analysis, as well as on the basis of the judgment of the Hon'ble Supreme Court, we conclude that the product under consideration i.e., 'Small Form-factor Pluggable Optical Transceiver' of various models are cla....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... "10. Entries have also been perused by the Court. In view of the fact that the classification of SFP's has already been decided in various decisions and has also been accepted by the Department, the impugned ruling dated 26th September, 2024 by which the Authority has observed that SFP's would be classifiable under 85176290 with Basic Customs Duty Act of 20% would not sustain and the same is liable to be set aside. The goods i.e., SFPs shall stand covered under Entry 85177990 and shall also be entitled to applicable exemptions. Accordingly, the impugned rulings are set aside. Both the appeals are allowed in the above terms and disposed of. Applications, if any, are also disposed of." 1.27 In addition to the above, we also wish to place reliance on the Order-in-original (OIO) dated 09th June 2023 passed by the Principal Commissioner of Customs, Bengaluru in IBM India Private Limited matter for import of transceivers for period January 2016 to February 2018. Therein, the Hon'ble Principal Commissioner of Customs has held that the Transceivers are parts of equipments and are correctly classifiable under CTH 8517 70 90 and are entitled to duty e....
X X X X Extracts X X X X
X X X X Extracts X X X X
....her 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): 8517 62 -- Machines for the reception, conversion and transmission or regeneration of voice, images, or other data, including switching and routing apparatus 8517 62 90 --- Other 20% 20% - Parts 8517 79 -- Others 8517 79 90 --- Others 15% Nil (Sr No. 5 of Notification No. 57/2017) 1.34 In addition to above, there exists a difference duty of 20% in the applicable custom duty between the two competing entries as mentioned above. 1.35 The applicant has observed divergent classification practices, perhaps after issuance of the Reliance Jio Infocom Ltd., (supra), wherein a few of the importers have been classi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... and sound recorders and reproducers, and parts and accessories of such articles. 1.42 Prior to discussing the scope of the two competing Tariff Entries, i.e., Tariff entry 8517 62 90 and Tariff entry 8517 79 90 of the Customs Tariff, it is essential to discuss the scope and ambit of Tariff Heading 8517 of the Customs Tariff. 1.43 Amongst other things, Tariff Heading 8517 covers "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)". 1.44 The WCO Explanatory Notes, 2022 Edition ('WCO Explanatory Notes') of Tariff Heading 8517 lay down the ambit of the Tariff Heading to include "apparatus for the transmission or reception of speech or other sounds, images or other data between two points by variation of an electric current or optical wave flowing in a wired network or by electro-magnetic waves in a wireless network". Further, the apparatus of the said Tariff heading may communicate in signals, which may be analogue or digital. 1.45 CTH 8517 is further subdivided into three 1-dash sub-headings. The second one-dash subheading (i.e....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ions thereof. They may be configured, for example, as public switched telephone networks. Local Area Networks (LAN), Metropolitan Area Networks (MAN) and Wide Area Networks (WAN). whether proprietary or open architecture. 1.48 In view of the above understanding, it is clear that CTH 8517 62 covers machines or 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. The products such as network interface cards, modems etc. covered under CTH 8517 62 are independent products in themselves and are capable of performing the transmission or reception of data over wired or wireless communication network. These devices are standalone machines/equipments which can perform the reception and transmission of data independently. 1.49 The product in question is a transceiver module which acts as an interface between networking equipment (such as switches,) and interconnecting cabling (copper/fiber). The product in question does not constitute, in itself, a communication apparatus or apparatus that is used for transmission or reception of voice, images or ot....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ter processor cards. The line cards are simply inserted in these slots in the existing Routers. These line cards become functional only when plugged into the said slots in the Router chassis. The line cards source intelligence from control and processor module of the Router. These line cards cannot perform its function on a stand-alone basis in the imported condition. Further, communication between the line cards and the other components of the Router, most importantly, the switch processor board, is in the electrical domain and in completely proprietary data protocols. These facts are decisive to conclude that the line card/modules in question are parts, as they cannot perform independently of the Router because unless and until the said cards/modules are slotted into the dedicated slots into the chassis of the equipment, the said cards/modules cannot function. The cards/modules are dependent on the intelligence (i.e. timing information) provided by the control and timing modules. The timing information provided by the control and timing modules is essential for the proper functioning of these cards. Without connection to the overlying software of the equipment and the control/tim....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed by HPE would be usable only in a HPE networking equipment such as switches and nowhere else. j. In other words, these cards/modules possess no functionality other than when used in the dedicated slot designed for them in the primary equipment chassis. 1.56 These facts are decisive to conclude that the transceiver modules in question are parts, as they cannot perform independently of the networking equipment's because unless and until the said transceiver modules are slotted into the dedicated slots into the chassis of the equipment, the said transceiver modules cannot function. 1.57 The product in question lacks the ability to operate independently of the primary network setup. Their role is entirely dependent on being part of a network equipment's, confirming that they qualify as parts rather than standalone devices. Consequently, they fail both tests of independence and individual functionality. 1.58 It is submitted that since both responses to the aforementioned test set forth by Hon'ble Principal bench of CESTAT are negative, therefore, the applicant is of the view that the product in question (i.e., Transceivers) are appropriately classifiable as '....
X X X X Extracts X X X X
X X X X Extracts X X X X
....heading 84.09. 1.62 Although not admitting but for the purpose of argument the applicant accepts that transceivers imported by the applicant have an independent function on its own. However, by relying upon the example of carburetor from explanatory notes to CTH 8479, inference can be made that in case of transceivers, even if the said function is an individual function, the same can't be considered as an individual function on its own because the operation of the transceivers is inseparable from that of the networking equipments. Hence, the transceivers should be considered as a part of the networking equipment as opposed to an independent machine. Therefore, separately presented transceiver modules are therefore to be classified as part of networking equipment under tariff entry 8517.79.90. Classification of the product under consideration under tariff entry 8517 79 90: a. The third one-dash subheading (i.e., 8517 79) covers 'PARTS'. Further, as per the explanatory notes to CTH 8517, parts of the apparatus of this heading are classified here. b. Thus, it can be concluded that parts which are used in switching and routing apparatus of s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....media gateways,gateway controllers and session border controllers; g. Packet Transport Node (PTN) products, Multiprotocol Label Switching- Transport Profile (MPLS-TP) products ;; h. Multiple Input/Multiple Output (MIMO) products; i. Long Term Evolution (LTE) products. 10% Whether the question(s) raised is pending in the applicant's case before any officer of Customs, Appellate Tribunal or any Court of Law? 1.66 In the present case, it is the Applicant's submission that the question raised by it in this Application are not pending before any officer of Customs, Appellate Tribunal or any Court of Law. It is humbly submitted that the Applicant has not been issued any summons mandating it to provide any kind of information with respect to import of the subject goods (i.e., indicator panels). However, it is pertinent to clarify that issuance of such summons by any officer of Customs is not equivalent to the questions being pending before any officer of Customs, Appellate Tribunal or any Court of Law. 1.67 In its regard, reliance is placed on M/s Spraytec India Ltd versus Directorate of Revenue Intelligence (2023) 4 Cen....
X X X X Extracts X X X X
X X X X Extracts X X X X
....er, appellate tribunal or court, is not a ground contemplated under clause (a) of the proviso to Section 28-1(2) of the Customs Act. Clearly, a distinction must be made between that question pending consideration and a possibility of a question arising consideration." 1.68 Additionally, reliance is placed on an advance ruling issued to H.Q. Lamps Manufacturing Co. Ltd., (2023) 4 Centax 336 (A.A.R - Cus -Del.) wherein CAAR, New Delhi opines that an investigation is considered pending before an officer when a show cause notice or pre-consultation notice has been issued. For ease of reference, the relevant extract of the case is provided below: "13.6 On the basis of the careful examination of the relevant provisions of the Customs Act, Rules and CAAR Regulations, 2021, I am on the considered view that an application may be considered "pending" before any officer of customs only if it is pending before an officer in formal manner before an officer who is competent to answer the said question in terms of specific powers vested with the officer under the Customs Act, 1962. An illustrative list of such situations would include cases wherein a Show Cause Notice has been issued;....
X X X X Extracts X X X X
X X X X Extracts X X X X
....e. ACC Import were sought vide this office Letter F.No. VIII/CAAR/Delhi/l lewlett(ACC Import)/97/2025/268 dated 28.05.2023, and letter of even number 420 dated 03.07.2025 sent through email. However, no reply was received from the concerned port commissioenrate. 3. Personal Hearing: Representatives appeared before Authority for personal hearing in virtual mode on 29.08.2025 and reiterated the facts already mentioned in the application. During the course of personal hearing, it has come to notice that the matter has already been decided by the CESTAT in case of other party. Hence, prima facia liable for rejection under Sub section 2 of Section 28 1 of the Customs Act, 1962. The A.R argued against this and requested to grant one week time to submit their views before disallowing the application. 4. Additional Submissions: 4.1 Before the personal hearing the applicant, has filed additional submission vide email dated 29.08.2025. The submissions are reproduced below: 4.2 We Hewlett-Packard Enterprise India Private Limited ('HPE' or 'the Applicant' or 'the Company' or 'We') having IEC 0715007190, have filed advance ruling application reques....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 15% Effective rate of duty 10% (Sr No. 20 of Notification No. 57/2017) Nil (Sr No. 5 of Notification No. 57/2017) Remarks Currently adopted by HPE for import clearance Proposed HS classification 4.6 Product understanding- 1. The Applicant imports various transceiver modules, categorized primarily by: a) Fiber type and transmission method - including Single-Mode, Multimode, and Bi-Directional (Bi- Di) SFP modules. b) Form factor - classified into: ▪ Category A: Small Form-Factor Pluggable (SFP/SFP+) - compact modules for general networking. ▪ Category B: XFP - used for 10 Gbps applications. ▪ Category C: Quad Small Form-Factor Pluggable (QSFP/QSFP+) - supports 40 to 400 Gbps for high- speed data centers. ▪ Category D: C Form-Factor Pluggable (CFP/CFP2) - larger modules for long-haul and high-capacity networks. ▪ Category E: Direct Attach Copper cables with SFP modules. c) It is humbly submitted that these transceiver modules operate at different speed. HPE imported transceiver modules support data transfer rate of 10 GBPS, 25 GBPS, 40GBPS, 100....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... ▪ IBM India Pvt. Ltd. (Final Order No. A/85426/2024 (2025) 27 Centax 54 (Tri .- Bom) - CESTAT relying upon Reliance Jio judgement upheld the classification under 8517.79.90. ▪ Juniper Networks ((2025) 26 Centax 238 (Tri .- Bang)- CESTAT affirmed classification of transceivers as parts under 8517.79.90. ▪ Nokia Solutions & Networks India Pvt Ltd (February 2025) - Hon'ble Delhi High Court has overruled the Delhi Advance Ruling Authority order (Order No. CAAR/Del/Nokia Solutions/57/2024) dated 26.09.2024 and have classified transceiver module under 8517.79.90. b) Since, the matter is already a covered issue and the classification dispute has been settled by Hon'ble courts, we pray before your good self to classify the product under 8517.79.90 as 'parts' of items covered under Tariff Heading 8517 such as networking equipment's etc. 2. Coverage as per Explanatory notes (EN) to heading 8517: Coverage under EN to heading 8517 The function of product in question In terms of EN, CTH 8517 62 covers machines or apparatus which allows for the connection to a wired or wireless communication network or the transmissio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....n the Router chassis. ▪ These line cards cannot perform their function on a stand-alone basis in the imported condition. ▪ The cards/modules are dependent on the intelligence (i.e. timing information) provided by the control and timing modules. ▪ The line cards are proprietary of the Original Equipment Manufacturer. e) In the same lines, by applying the Ratio decidendi of the aforementioned judgment in the present case, we are of the following view: ▪ Networking equipments or switches just like routers have dedicated slots marked for these transceivers. ▪ These transceivers are simply inserted in these slots in the existing networking equipments etc. ▪ These transceivers become functional only when plugged into the said slots in the networking equipment chassis. ▪ Just like line cards, transceivers also source intelligence from control and processor module of the networking equipments. ▪ Similar to line cards, transceivers imported by the applicant cannot perform its function on a stand- alone basis in the imported condition. ▪ Further, the....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... classified under 8517.79.90, the applicable rate of BCD should be Nil in terms of serial no. 5 of the said Notification. Relevant extract of notification is reproduced below: S. No. Sub-heading Description of goods Standard rate Condition No. 5 8517 71 00 or 8517 79 90 All goods other than the parts of cellular mobile phones or wrist wearable devices (commonly known as smart watches)] Inputs or sub-parts for use in manufacture of parts mentioned at (a) above NIL b) In terms of coverage under aforementioned notification, all goods are covered except the following: Parts of cellular mobile or * Parts of wrist wearable watches c) Since the product in question is neither a part of cellular mobile phone nor a part of wrist wearable watches, therefore the same is eligible for concessional rate of BCD under Sr. no. 5 of Notification no. 57/2017. d) It is submitted that in case, your Authority rules that the appropriate classification of the product under consideration is Tariff entry 8517.62.90 of the Customs Tariff, it may also be ruled whether the product under consideration will be eligible for concessional....
X X X X Extracts X X X X
X X X X Extracts X X X X
....281 (2) proviso (a) & (b) 4.15 Section 28 1 (2) empower the customs advance ruling authority to allow or reject an application after examination. However, the proviso clearly states that an application shall not be allowed in two scenarios: a) The question raised in the applicant's case is pending before an officer of customs/tribunal/ court, b) The question raised in the application has been decided by a tribunal/court. 4.16 At the outset, it is clarified that the question raised in the applicant's case is not pending before any Customs officer, tribunal, or court. Therefore, there is no issue of maintainability under proviso (a) to Section 281 (2) of the Customs Act. 4.17 So far as the proviso (b) is concerned, to exclude the jurisdiction of advance ruling, the question raised in the application need to have been decided by a tribunal/court. While it is noted that there are several decisions of the Hon'ble Supreme/ High Court in the case of other entities, on the issue of classification of transceiver modules, most importantly it doesn't automatically preclude the Authority from examining whether the facts in the present case are identic....
X X X X Extracts X X X X
X X X X Extracts X X X X
....examine the application on merits despite the existence of similar rulings, thereby affirming that the jurisdiction of the authority is not ousted merely because similar issues have been adjudicated in other case. It specifically held that the mere existence of a ruling on similar goods by CAAR, Mumbai in the case of a different applicant does not render the application non- maintainable, and that for the bar under the second proviso to Section 281 (2), the question must have been decided in the applicant's own case, and not merely in the case of another entity. The relevant paragraph from the ruling is reproduced below: ". Finding that the Customs Authority for Advance Rulings, Mumbai has already issued rulings on the similar item and on being informed that the Department is in the process of filing SLP, I draw attention to the second proviso under Sub- section (2) of Section 28-1 of the Customs Act, 1962 which bars the Authority to allow application where the question raised in the application, is already pending in applicant's case before any officer of customs, the Appellate Tribunal or any court, or same as in a matter decided already by the Appellate Tribunal....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the same. The subject matter of dispute on which the Commissioner (Audit). Mumbai Customs Zone-I has issued a show cause notice is an earlier version of the Fire TV Stick. The decision of the said notice, pending before the Commissioner of Customs (Import), ACC, Mumbai has been stayed by the Hon'ble High Court of Bombay. Therefore, I am not inclined to accept the view. suggested by the Commissioner of Customs, Nhava Sheva-V that scope of advance ruling shall stand excluded even when similar matters are under dispute/litigation. If such a view is adopted it would not only be contrary to the proviso (b) reproduced/discussed above which uses the terms 'same matter', but also unduly restrict the scope of advance rulings in customs, thereby, defeating the very purpose of advance rulings. Besides, the applicant has also pointed out that the same devices were under consideration before the Customs Authority for Advance Rulings, New Delhi in the case another applicant and the matter stands decided. Therefore, deferring the decision in these applications or even rejecting them would not serve any purpose. In so far as the issue of advance rulings in respect of an ongoing activi....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... the subject goods in the instant applicant i.e. different types of HP transceivers such as 'SFP Transceivers such as SFP/SFP+, QSFP/QSFP-DD, CFP/CFP2' are not the same but similar with respect to the goods covered in case of M/s IBM India Pvt. Ltd. and Nokia Solutions and Networks India Pvt. Ltd. wherein Hon'ble CESTAT and Delhi High Court pronounced the rulings respectively. Further, the subject goods in the instant application having unique factual matrix are distinguishable from those wherein the Tribunal/ Court pronounced their judgements. Therefore, I am of the opinion that the instant application is maintainable in view of proviso (b) to Section 28-1 (2) of the Customs Act 1962. Ex-parte decision related findings :- 5.3 "As per the sub-rule 19 of the CAAR Regulation 2021 as provided under Notification No.01/2021-Customs (N.T.) dated 04.01.2021 as amended vide Notification No.63/2022-Customs (N.T.) dated 20.07.2022, Hearing of application ex parte. - * Where on the day fixed for hearing or any other day to which the case is adjourned, the applicant or the Principal Commissioner or Commissioner does not appear in person or through an authorised repre....
X X X X Extracts X X X X
X X X X Extracts X X X X
....at the goods under consideration are Small Form-factor Pluggable (SFP) and similar pluggable transceiver modules such as SFP+, QSFP, CFP, XFP, etc. The applicant has explained, supported by technical literature, that these modules are compact, hot-pluggable devices designed to be inserted into designated slots of host networking equipment such as routers and switches. It is observed that they provide the electrical and optical interface between the host equipment and fibre optic or copper cabling. thereby enabling connectivity within the network. 5.7 It is further observed that these transceivers, in the imported condition, do not operate independently. They require power from the host device, depend on the host's control software and firmware, and rely on timing and signalling from the host equipment to function. They do not contain independent switching or routing capability. They are also proprietary in design, with modules manufactured by one Original Equipment Manufacturer (OEM) not being cross-compatible with equipment of other OEMs. The above features demonstrate that the transceivers are designed as integral components of the host networking equipment rather than as ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ON 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) (A) Base stations. The most common types of base stations are those for cellular networks, which receive and transmit radio waves to and from cellular telephones or to other wired or wireless networks. Each base station covers a geographical area (a cell). If the user moves from one cell to another while telephoning, the call is automatically transferred from one cell to another without interruption. (B) Entry-phone systems. These systems usually consist of a telephone handset and keypad or a loudspeaker, a microphone and keys. These systems are usually mounted at the entrance of buildings housing a number of tenants. With these systems, visitors can call certain tenants, by pressing the appropriate keys and talk to them. (C) Videophones. Videophones for buildings, which are a combination consisting principally of a telephone set for line telephony, a television camera and a television receiver (transmission by line). (D) Apparatus for telegraphie communication other than facsimile machines of....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... type on chassis which are then incorporated into the exchange on metal racks. Particularly in smaller-sized installations they may, however, all be mounted on a single rack to form a self-contained automatic exchange. Automatic switchboards and exchanges may also incorporate such facilities as abbreviated dialling, call waiting, call forwarding, multi-party calling, voice mail, etc. These facilities are accessed from the user's telephone set through the telephone network. They are used for the public network or for private networks that utilise a private branch exchange (PBX) which is connected to the public network. Automatic switchboards and exchanges may also be equipped with consoles similar to telephone sets for when intervention or service by an operator is required. (2) Non-automatic switchboards and exchanges. These consist of a frame on which are mounted the various manual switching devices. They require an operator to manually connect each call received by the switchboard or exchange. They comprise "call" or "clear" indicators for signalling that a call is being made or is completed; operators' telephone sets (sometimes special....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ty of transmission and reception of digital information. (6) Pulse to tone converters which convert pulse dialled signals to tone signals. " 5.10 On perusal of the Tariff Heading, HSN Explanatory Notes, I observe that sub-heading 8517 62 includes apparatus such as modems, multiplexers, routers and similar machines that can transmit or receive signals on their own and perform conversion/regeneration functions independently. The Notes also emphasise that where a product has no independent function and operates only as a component of the host apparatus, it is to be treated as a part. 5.11 I note that the applicant has explained that the subject transceivers do not possess the functionality of a modem, router, or switching apparatus. They are not capable of reception, conversion and transmission or regeneration of data independently. On examination of the product specifications, I observe that the transceivers only convert electrical signals from the host equipment into optical signals for transmission over fibre (and vice versa) but do so entirely under the control of the host device. It is also noted that the modules cannot transmit or receive data unless connected to ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ssifiable under tariff item 8517 79 90 of the First Schedule to the Customs Tariff Act. 1975. 5.13.4 I observe that this conclusion is consistent with judicial pronouncements on identical goods. (a) In IBM India Pvt. Ltd. vs Commissioner of Customs (Import) [Final Order No. A/85426/2024 dated 22.04.2024], the CESTAT reiterated that such modules are correctly classified under 8517 79 90. (b) The Hon'ble Delhi High Court in Nokia Solutions and Networks India Pvt. Ltd. v. CAAR, New Delhi [CUSAA 40/2025 & 41/2025] set aside a CAAR ruling which had classified SFP transceivers under 8517 62 90, holding that in light of the consistent judicial pronouncements, classification under 8517 79 90 was the correct position. 5.13.5 In view of above discussions and findings I am of considered view that the subject transceiver modules are correctly classifiable under tariff item 8517 79 90 of the First Schedule to the Customs Tariff Act, 1975. APPLICABILITY OF NOTIFICATION NO. 57/2017-CUS |Sr. No.5]. 6. Having held supra that the impugned goods are appropriately classifiable under tariff item 8517 79 90. I now take up the other issue whether the impugned goods are e....