2025 (1) TMI 1786

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....upply in Indian market. One of the product imported by the appellants is 'Enterprise class/Non-carrier Ethernet Switches' from their global technology partner M/s CISCO Systems International BV, Amsterdam, Netherlands. For importation of "Ethernet Switches - CISCO Catalyst 3850" through the Air Cargo Complex Customs Import Commissionerate, the appellants had filed various Bills of Entry (B/Es) and classified the said imported goods under Customs Tariff Item (CTI) 8517 6290 of the First Schedule to the Customs Tariff Act, 1975. The appellant had also claimed the benefit of concessional rate of Basic Customs Duty (BCD) of 10% ad valorem under Sr. No. 20 of Notification 57/2017-Customs dated 30.06.2017 in self-assessment of imports for payment of customs duty on such goods. 2.2 However, by citing the changes made in the Notification No. 57/2017-Customs dated 30.06.2017, the department had interpreted that the imported ethernet switches shall be classifiable under CTI 8517 6990 and is chargeable to 20% BCD and issued consultative letter dated 15.03.2019 requesting the appellants to voluntarily pay the differential duty. Vide reply letter dated 06.06.2019, the appellants had justifie....

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....for use in network as transport/carriage switch known as 'carrier ethernet switch', as well as Enterprise switch for use in customer's premises known as 'non-carrier ethernet switch'. Therefore, in the impugned order it was held that since these can also be used for telecommunication equipment, for which concessional rate of duty is not applicable, he confirmed the differential duty on the appellants 7. The issue that was dealt in the above referred Cisco Commerce India Pvt. Ltd. (supra) is whether the "Ethernet Switches" classifiable under Customs Tariff Item 8517 6290 are eligible to concessional Basic Customs Duty (BCD) in terms of goods covered under Serial No. 20 of Notification No.57/2017-Customs, as amended, through subsequent notifications, or not. In examining the disputed issue thoroughly, this Co-ordinate Bench of the Tribunal in the case of Cisco Commerce India Pvt. Ltd. (supra), had considered the scope of goods covered under CTI 8517 6290 and the various notifications issued for providing exemption from Basic Customs Duty, vide Notification No. 24/2005-Customs dated 01.03.2005, amending Notification No. 11/2014-Customs dated 11.07.2014, and the subsequent Notificat....

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....nt to prove that the product in dispute, is not covered by the exemption entry in Sr. No. 20 of the Notification No. 57/2017-Cus. dated 30.06.2017. 9.1 Further, we also find that the Co-ordinate Bench of the Tribunal at Mumbai in the case of self-same appellants in the case of Ingram Micro India Pvt. Ltd. vide Final Order No.85758-85760 dated 17.04.2023 have held as under: "4.2 Vide final order No. 40817/2020 dated 26.10.2020, as further rectified by miscellaneous order No. 40007/2021 dated 12.01.2021, following has been held:- "4. Heard both sides and perused the records of the case. We find that the impugned goods have been classified under 85176290 by the appellant in the past and learned counsel has submitted evidence to the effect that the same are being classified under same heading even afterwards at various customs locations and exemption is being allowed as claimed. We also find that ADG (Adjudication), DRI has passed a comprehensive order holding the classification of the goods in favour of the appellants. Learned counsel has demonstrated that US and German Customs have given rulings classifying the goods at six digit level as claimed by the appellant....

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....uent notification for an identical product, the benefit under the notification dated 01.03.2005, as amended on 11.07.2014 should also be extended to Ingram Micro." xxx xxx xxx xxx 5.1 In view of the above decisions, we do not find any merits in the impugned order and set aside the same allowing the appeals." 9.2 Furthermore, we also find that the Co-ordinate Bench of the Tribunal at Chennai in the case of self-same appellants in the case of Ingram Micro India Pvt. Ltd. (supra) vide Final Order No.40817 dated 26.10.2020 have also upheld the classification of Enterprise class ethernet switches under 8517 6290 and extended the notification benefit to such importers. The relevant paragraphs is the said order is quoted here under: "4. Heard both sides and perused the records of the case. We find that the impugned goods have been classified under 85176290 by the appellant in the past and learned counsel has submitted evidence to the effect that the same are being classified under same heading even afterwards at various customs locations and exemption is being allowed as claimed. We also find that ADG (Adjudication), DRI has passed a comprehensive order holdi....