TaxTMI 
TaxTMI 
2026 (10) TMI 137
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....) navigation/positioning (GNSS) modules - for supply to Original Equipment Manufacturers (OEMs), is seeking an advance ruling on the following questions in respect of goods proposed to be imported: (i) Whether the subject goods, namely, the Wi-Fi communication module, the cellular communication modules and the navigation/positioning (GNSS) modules described below, are classifiable under Customs Tariff Item 8517 79 90 of the First Schedule to the Customs Tariff Act, 1975; and (ii) If so classifiable, whether the subject goods are eligible for exemption from basic customs duty under SI. No. 5 of Notification No. 57/2017-Cus. dated 30.06.2017, as amended. 2. The applicant vide their application dated 12.01.2026 has submitted has follows: 2.1 The applicant proposes to import embedded electronic modules falling in three functional categories - (a) Wi-Fi communication module, (b) cellular communication modules, and (c) navigation/positioning (GNSS) modules for supply to Original Equipment Manufacturers (OEMs), who integrate such modules into finished electronic equipment such as smart meters, industrial lo'T devices, navigation an....
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....pplication is maintainable, the advance ruling being sought on two questions specified in Section 28H (2) of the Act, (a) the classification of the subject goods Wi-Fi communication module, the cellular communication modules and the navigation/positioning (GNSS) modules described below, are classifiable under Customs Tariff Item 8517 79 90 of the First Schedule to the Customs Tariff Act, 1975 and (b) their eligibility for Nil' rate of BCD under Serial No. 5 of Notification No. 57/2017-Cus. dated 30.06.2017. Neither question has been raised and is pending, nor has been decided, in the applicant's own case before any officer of Customs, the Appellate Tribunal or any Court. As 'advance ruling' under Section 28H means a decision on the specified questions in respect of goods prior to their importation, and the applicant proposes to import the subject goods before commencement of imports. the application is maintainable and admissible. 2.5 The applicant submits that Heading 8517 is function-centric and technology-neutral: it covers not merely complete or finished consumer devices, but expressly extends to parts, components and modules which perfor....
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....tion over LTE networks and are capable of processing, transmitting, and receiving voice, image, and data signals. They further support multi constellation GNSS for positioning and may include Wi-Fi and Bluetooth connectivity. Despite having embedded computing capability, the dominant and essential function of the. SC600Y Series remains wireless telecommunication through cellular networks, acting as a communication apparatus for transmitting and receiving data. (c) AirPrime WP76XX Series - The AirPrime WP76XX series comprises embedded cellular telecommunication modules supporting ITE-based voice, SMS, and data services. These modules function as cellular transceivers. enabling devices to connect to public telecommunications networks for the transmission and reception of voice and digital data. Certain variants additionally include GNS functionality for reception of satellite positioning signals. The essential character of the WP76XX modules is that of apparatus for wireless telecommunication, performing transmission and reception of signals over cellular networks. (d) TT02-00 - The TT02-00 is a quad band GSM/GPRS communication module with integrated GNSS and BLE 4.....
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....eiver module designed to receive radio signals transmitted by navigation satellites such as GPS, GLONASS, Galileo, and BeiDou. The module receives satellite signals, processes the navigation data, and outputs position, velocity, and time information to a host system via standard communication interfaces. The TAU1114 performs the function of reception of radio signals and extraction of navigational data, which constitutes reception of information transmitted wirelessly via satellite communication systems. (b) TAU1204 GNSS Module - The TAU1204 are advanced dual frequency GNSS receiver modules capable of simultaneously receiving multiple satellite signals across different frequency - bands. These modules receive satellite transmissions, process navigation signals, and output high precision positioning data to connected systems. They are designed exclusively for reception and processing of wireless satellite signals and have no independent mechanical or electrical function other than reception of transmitted data. (c) TT03-00 GNSS Module - The TT03-00 is an embedded wireless cellular communication module designed for machine to machine (M2M) and Internet of Things (lo....
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.... Quectel SC600Y, TT02-00, Neoway M590-CA, and Neoway N706-CB Series are embedded cellular communication modules specifically designed for the transmission and reception of data over public mobile telecommunications networks, including LTE, UMTS. and GSM networks. They incorporate cellular modem functionality, RF transceivers, communication protocol stacks, and SIM/eSIM interfaces. When integrated into a host device. these modules perform the necessary modulation, demodulation, encoding, and decoding of signals, thereby enabling wireless data communication. The essential character and principal function of these products is that of telecommunication apparatus in an embedded form. Any additional functionalities, such as GNSS, Wi-Fi, or Bluetooth, where available in certain variants, are ancillary and do not detract from their principal function of cellular communication. Accordingly, these cellular communication modules are appropriately classifiable under Heading 8517 as apparatus or parts thereof for the transmission or reception of data. It is submitted that, although cellular mobile phones and wrist-worn wearable devices also incorporate cellular communication components....
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....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 electromagnetic waves in a wireless network. It is to be noted that the subject or modules are parts of devices which permit the transmission or reception of speech or other sounds, images or other data by electro magnetic waves (i.e. cellular networks) in a wireless network. Further, as per HSN Explanatory Notes to Heading 8517, the goods covered under Chapter heading 8517 have been divided into three categories - I. Telephone sets, including telephones for cellular networks or for other wireless networks II. 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) III. Parts Further, as per HSN Explanatory Notes to Heading 8517, the above-mentioned Category Il has further been divided into the following groups: (A) Base station; (B) Entry-phone systems; (C) Videophones; (D) Apparatus for telegraphic communication other than....
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....covered under Heading 8517. 2.8.2 Based on the above, it can be inferred that the subject goods are used as parts of components of apparatus / devices which can provide cellular / satellite / Wi-Fi network connectivity and also such subject goods are not capable of providing such connectivity in their imported condition and are to be assembled with other components to make a complete apparatus or device that can provide cellular network connectivity. Such assembled apparatus / device is classifiable under Heading 8517 and the same in unassembled form would render such apparatus/ device specific parts, classifiable under Tariff Item 8517 79 90 and not as 'other' complete machines or apparatus under Tariff Item 8517 69 90. 2.9 in support of the distinction between an apparatus, a machine and a part, the applicant relies on the following dictionary and lexicon meanings: Apparatus Source Definition P Ramanatha Aiyar's Advanced Law Lexicon Something which is inclusive of some other appliance; it must be considered when current is passing through and not in its inanimate state. Webster Comprehensive Dictionary. A complex device or machine for ....
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....missions. We find that the Main Switching Center consists of various modules in the form of PCBs. Each module will have its own function. The modules are all of standard format. There is a face plate on the front of each module with display elements, with controls and access to front connectors. The CBs of the modules are of multi layer design and the components with which they are equipped are mainly surface mounted devices. The Main Switching Center is a machine with the provision for expansion. The modules are inserted as essential parts to attain a particular capacity. The modules on their own do not have any independent function and they cannot be dis-assembled further. Even though the numbers of modules are variable depending on capacity, each module remains as a part of the main machine, i.e. Main Switching Center. In view of the above, the Original Authority's finding that the modules cannot be considered as apparatus is correct. Hence there is no infirmity in the Order-in-Appeal confirming the Original order. Therefore the appeal of the Revenue is devoid of any merit. Hence we reject Revenue's appeals." .... (emphasis supplied) In view of the above-mentioned,....
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...., and other printing components of Heading 8442 and includes copying machines, facsimile machines, and their accessories. It is submitted that the goods covered under Heading 8443 are printing machines which do not require internet connectivity, much less cellular internet connectivity, as such printing machines would only be connected to a local area network of other computer systems for receiving data which needs to be printed. Further, the subject goods being cellular modules cannot be used as parts or accessories in any of the transmission or reception apparatuses utilized in such local area networks. Thus, the subject goods are not transmission or reception apparatus of heading 8443. 2.14. The applicant submits that the description of heading 8525 provides for inclusion of transmission apparatus used for radio broadcasting or television, whether incorporating reception apparatus or sound recording or reproducing apparatus and includes television cameras, digital cameras and video camera recorders. It can be clearly observed that the goods covered under Heading 8525 are apparatuses used for the transmission or reception of radio-broadcasting or sound apparatus and could also....
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....on of voice, images or other data for communication in a wireless cellular or GPS network and the same is in consonance with the description for classification under heading 8517 and under Tariff Item 85!7 79 90 as per the Customs Tariff Act, 1975. 2.17 In view of the classification of the subject goods under heading 8517, specifically under tariff item 8517 79 90, it is submitted that the subject goods proposed to be imported are eligible for exemption from Basic Customs Duty under SI. No.5 of Notification No.57/2017-Cus. dated 30.06.2017, as amended. The relevant entry in the exemption notification as amended is reproduced below for ready reference: S.No. Chapter or Heading or Sub-heading or tariff item Description of goods Standard Rate Conditions No. (1) (2) (3) (4) (5) 5. 8517 71 00 or 8517 79 90 (a) All goods other than the parts of cellular mobile phones or wrist wearable devices (commonly known as smart watches) (b) Inputs or sub-parts for use in manufacture of parts mentioned at (a) above Nil 2.17.1 As per the said Notification in its present form, a "Nil" rate of Basic Customs Duty is prescribed for goods cla....
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....e exemption remains available under the same tariff items for all goods other than parts of cellular mobile phones or wrist wearable devices (smart watches), and inputs or sub-parts used in the manufacture thereof. The subject goods, being embedded communication and positioning modules, accordingly, fall within the scope of SI. No. 5 of Notification No. 57/2017-Cus. as amended and are eligible for the "Nil" rate of Basic Customs Duty prescribed therein, subject to compliance with the applicable procedural requirements. 2.18 The goods are not classifiable under Heading 8542 Tariff Heading 8542 of the Customs Tariff Act includes "Electronic Integrated Circuits" and relevant entries in the Customs Tariff have been reproduced below: 8542 ELECTRONIC INTEGRATED CIRCUITS - Electronic Integrated Circuits 8542 31 00 -- Processors and controllers, whether or not combined with memories, converters, logic circuits, amplifiers, clock and timing circuits, or other circuits 8542 32. 00 -- Memories 8542 33 00- -- Amplifiers 8542 39 00 -- Other 8542.90 00 - Parts 2.18.1 The applicant submits that as per Rule 3(a) of the General Rules of Inte....
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....lassified under the Heading appropriate to the goods to which they are most akin. The subject goods are integral parts or components of modems, vehicle tracking devices, Internet of Things devices (lo'T), Wireless cellular network devices, ATM machines, Electronic Data Capture (EDC) machines, modems etc., and are essentially used in all devices / apparatuses that utilize wireless networks / satellite based GPS to operate and enable transmission of voice, images and other forms of data through such networks. Thus, as per Rule 4 of GRI, goods in Heading 8517 are of similar description which is inclusive of devices and parts in which the subject goods, 2DS Wi-Fi^TM Module, NEOWAY N58, Quectel SC600Y Series, TAU1114 (GNSS positioning module), TAU1204, AirPrime WP76XX Smart Embedded Modules, TT02-00, Neoway M590-CA, Neoway N706-CB and TT03-00 module are used. 2.18.5 As per HISN Explanatory Notes to Heading 8517, the said Heading covers 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. It is....
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....ment must be viewed holistically and the product treated as a part if it lacks a definite identity and function independent of the main equipment. 3.4 Thirdly, the applicant relied on Commissioner of Customs, Bangalore v. Modicom Network Pvt. Ltd., 2005 (185) E.L.T. 333 (Tri .- Bang.), for the proposition that modules inserted as essential parts of a main machine, having no independent function and incapable of further disassembly, are parts and not apparatus. 3.5 Applying these authorities, the applicant submitted that the subject goods answer each limb of the test: (a) in their imported condition they perform no communication or positioning function; (b) they become operational only when mounted on a PCB and integrated, with an antenna. a power source and (for the cellular modules) a SIM/eSIM, into a host apparatus. Therefore, they have no separate identifiable function and are incapable of independent operation. They are, hence. parts, classifiable under Customs Tariff Item 8517 79 90, and not complete apparatus falling under any of the apparatus' entries of Heading 8517. In view of the above stated, the applicant humbly submits that the subject....
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....ection 28E of the Customs Act defines the term "Applicant" as follows: "...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); .... [Emphasis Supplied] In view of the above, the Applicant has been granted a valid Importer-Exporter Code (IEC) under Section 7 of the Foreign Trade (Development and Regulation) Act, 1992. The Applicant's IEC is ABFFR4012D. Accordingly, the Applicant is duly recognised as an importer under the applicable foreign trade and customs laws and is eligible to seek an advance ruling in respect of the proposed import transactions. Further, clause (b) of Section 28E of the Customs Act. 1962 defines the term "advance ruling" as follows: "(b) "advance ruling" means a written decision on any of the questions referred to in section 28H raised by the applicant in his application in respect of any goods prior to its importation or exportation;" .. [Emphasis Supplied] 6.4 The first schedule to the Customs Tariff Act, 1975 mandates the General R....
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.... (a) Classification of goods under the Customs Tariff Act (b) Applicability of a notification issued under sub-section (1) of section 25, having a bearing on the rate of duty: ... [Emphasis Supplied] 6.6 The present application is not barred by the provisions of Section 28I of the Customs Act, 1962. The relevant provisions of Section 28I of the Customs Act, 1962 are reproduced hereinbelow: "SECTION 28-I. Procedure on receipt of application. - (1) On receipt of an application, the Authority shall cause a copy thereof to be forwarded to the | Principal Commissioner of Customs or Commissioner of Customs and, if necessary, call upon him to furnish the relevant records: Provided that where any records have been called for by the Authority in any case, such records shall, as soon as possible, be returned to the Principal Commissioner of Customs or Commissioner of Customs. (2) The Authority may, after examining the application and the records called for, by order, either allow or reject the application: Provided that the Authority shall not allow the application where the question raised in the application is (a) already pe....
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....ly lists network interface cards. It therefore answers Heading 8517. (b) Cellular Communication Modules: Cellular communication modules (Ncoway N58, Quectel SC600Y Series and AirPrime WP76XX Series) are compact integrated circuit board containing the cellular communication chipset, baseband processor, RF transceiver and power- management unit, which forms one of the several components of an apparatus known as a cellular modem. The cellular modem is the primary device responsible for enabling cellular connectivity in a wide range of appliances and devices, facilitating data transmission over wireless networks. A cellular modem consists of a cellular module, a Microcontroller Unit (MCU), an application processor, a SIM/eSIM and an antenna, typically mounted on a PCB in embedded systems or devices such as smart meters, loT terminals, POS/EDC machines and cellular routers. In operation, the modem reads the identity information stored on the SIM (such as the International Mobile Subscriber Identity and authentication keys) during initialization. It scans for nearby cellular towers and selects a suitable network by signal strength and configuration. It initiates a netwo....
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....ssion) of data answering Heading 8517, the expression 'reception of ... other data' in that Heading not being confined to bi-directional traffic. I am conscious of the facts that the classification of communication modules of this genus has already been considered and decided in the case of another applicant, namely M/s ONYX Components & Systems Pvt. Ltd. However, the bar contemplated under the proviso to Section 28-I(2) of the Customs Act, 1962 operates only where the question raised in the application is pending before or has already been decided by, the applicant's own case. The mere existence of decisions concerning similar goods in the cases of other entities does not, by itself, oust the jurisdiction of this Authority. This view is consistent with the decisions of the Customs Authority for Advance Rulings, New Delhi, in case of M/s Hewlett-Packard Enterprise India Pvt. Ltd., 2025 (12) TMI 1495 and of the Customs Authority for Advance Rulings, Mumbai, in Amazon Seller Services Pvt. Ltd., (2023) 5 Centax 186 (A.A.R .- Cus .- Mum.). 6.8.1 In terms of Rule 1 of the General Rules for the Interpretation of the Harmonized System (GRI), the classification of goods i....
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.... wave flowing in a wired network or by electromagnetic waves in a wireless network. The heading 8517 as per the First Schedule to the Customs Tariff Act, 1975. has three single dash (-) entries. Thus, the goods covered under CTH 8517 (Telephone sets, including 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) have been divided into the following three categories: I. Telephone sets, including telephones for cellular networks or for other wireless networks: II. 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): III. Parts 6.8.3 As per HISN, the aforesaid category Il has further been divided into the following groups: (A) Base station; (B) Entry-phone systems; (C) Videophones; (D) Apparatus for tel....
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....ls within this category. It is a standalone device that performs the essential function of converting radio signals from a cellular network into digital data usable by a host device and vice versa. Its primary and sole function is data communication, bringing it squarely within the scope of heading 8517 of the First Schedule of the Customs Tariff Act, 1975; 6.8.5 The expression "parts" under CTH 8517 is required to be interpreted in the context of the structure of the heading, the relevant Section and Chapter Notes and the applicable principles of tariff classification. Where goods are specifically designed for and intended to be incorporated into an apparatus covered under the heading and do not constitute complete and independently usable apparatus, their classification as parts is warranted, subject to the applicable tariff provisions. 6.8.6 The Hon'ble Supreme Court in CCE, Delhi v. Insulation Electrical (P) Ltd., 2008 (224) E.L.T. 512 (S.C.) defined a 'part' as 'an essential component of the whole without which the whole cannot function". To like effect is Electrosteel Castings v. CCE, 1989 (43) E.L.T. 305 (Tribunal), maintained by the Hon'ble Supreme Cou....
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.... it would also be useful to refer to Note 2 of Section XVI of the Tariff Act, 1975 which provides for rules to be followed while classifying 'parts of machines' falling under Chapters 84 and 85. The relevant part of the Section Note 2 is reproduced below: "2 .- Subject to Note I to this Section, Note I to Chapter 84 and Note I to Chapter 85, parts of machines (not being parts of the articles of heading 84.84, 85.44, 85.45, 85.46 or 85.47) are to be classified according to the following rules: (a) Parts which are goods included in any of the headings of Chapter 84 or 85 (other than headings 84.09, 84.31, 84.48, 84.66, 84.73, 84.87, 85.03, 85.22, 85.29, 85.38 and 85.48) are in all cases to be classified in their respective headings;" (b) other parts, if suitable for use solely or principally with a particular kind of machine, or with a number of machines of the same heading (including a machine of heading 8479 or 8543) are to be classified with the machines of that kind or in heading 8409, 8431, 8448, 8466,8473,8503,8522,8529 or 8538 as appropriate. [However, parts which are equally suitable for use principally with the goods of headings 85....
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....s mandate, to be classified in Heading 8517. Accordingly, by application of GRI I read with Note 2(b).to Section XVI, all three categories of subject goods fall to be classified as parts under Heading 8517. Within the single-dash 'Parts' entry of Heading 8517, Tariff Item 8517 71 00 covers aerials and aerial reflectors and is inapplicable: Tariff Item 8517 79 10 covers populated. loaded or stuffed printed circuit boards, which the subject modules are not. The subject goods are therefore covered by the residuary Tariff item 8517 79 90 ('Parts - Other - Other'). 6.8.11 The subject goods are multi-component integrated circuits equipped with specific chipsets and used exclusively in apparatus for the transmission or reception of data. Applying GRI 3(a), the specific description under Heading 8517 ('parts of apparatus for the transmission or reception of voice, images or other data ... ') is to be preferred over the general description 'Electronic Integrated Circuits' under Heading 8542. The subject goods are accordingly not classifiable under Heading 8542. In light of the above, reference must be made to Section Note 2 (b) which covers other par....
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....evices (smart watches), and inputs or sub-parts for use in the manufacture of such excluded parts. The subject goods are standardised embedded modules designed for integration into a range of industrial, commercial and infrastructure equipment. They are neither parts of cellular mobile phones nor parts of wrist wearable devices, nor inputs/sub-parts for the manufacture of such parts. The applicant's reliance on Hewlett-Packard Enterprise (supra), where identical treatment was extended to modules of Heading 8517 79 90, is well founded. 6.9.3 I relied upon the ruling of the Customs Authority for Advance Rulings, New Delhi in M/s Hewlett-Packard Enterprise India Pvt. Ltd., 2025 (12) TMI 1405, wherein modules classifiable under Tariff Item 8517 79 90 were held to be covered by SI. No. 5 of Notification No. 57/2017- Cus. dated 30.06.2017 and eligible for the 'Nil' rate of basic. customs duty. The said ruling supports the applicant's contention that the benefit of the notification is available to eligible modules falling. under Tariff Item 8517 79-90, provided the exclusions specified in the notification are not attracted. 6.9.4 Furthermore, I have also relied upon ....