ALCATEL INDIA LTD Vs. COMMISSIONER OF CUSTOMS

JUDGEMENT

(1.) 1. In the first application - AAR/44(Cus)/39/2005 - the following question has been posed by the applicant for an advance ruling:

(2.) In Annexure-II to the application read with the Customs Technical Document furnished by the applicant and in the verbal submissions of their Ld. Representatives during the hearing before us, it has been stated that this product is a hybrid of optical, electronic and mechanical systems that forms part of a telecommunication system for use in transmission of aggregate data. It functions utilizing specifically the Optical (Transmission) Amplifier cards by optimizing the amplification performance of aggregate data transmission. It is a metro DWDM (Dense Wavelength Division Multiplexing) telecommunication platform (up to 32 telecommunication channels) supporting a broad range of aggregate data rates for application in (i) Non-Amplified Telecommunication Systems (ii) Intra-City Telecommunication Networks (iii) Amplified Telecommunication Systems for large Metropolitan Networks. This equipment supports variable rate transmission (optical) interfaces, capable of accepting a broad range of data rates, from 100 Mb/s up to 10 Gb/s. The system transports a wide variety of SDH (Synchronous Digital Hierarchy) and data signals, such as STM-1, STM-4, ATM, FDDI, Fibre Channel, digital video etc. It has been further submitted by the applicant that the Optical (Transmission) Amplifier cards function within the Alcatel 1696 Metro Span Telecommunication Unit. This Unit provides both wavelength add/drop and optical ring restoration. This enables the Alcatel 1696 Metro Span to extend the type of protection and flexibility that today is available through SDH and other protocols, without the added expense of these systems. Any transmission signal from 100 Mb/s to 10 Gb/s will be able to traverse a 1696 Metro Span ring with terminal equipment only at the add-and-drop sites. An internal wavelength switching matrix, makes the equipment able to provide the network topology and protection scheme best suited to match the system requirement. This telecommunication equipment, it is submitted, functions as a dedicated unit for the transmission of aggregate data.

(3.) IN his initial comments as well as during the hearing before us the stand taken by the Commissioner in regard to the Alcatel 1696 Metro Span Telecommunication Unit is also the same as that of the applicant, namely, that the equipment in question will be appropriately classifiable under tariff item 8517 50 99. As regards the Optical Amplifier Card, though in his initial comments the Commissioner took the stand that the product in question, being an amplifier part would more specifically be covered under tariff item 8543 90 00 which is sought to be supported by application of Rule 3(c), the Ld. Joint CDR appearing for the Commissioner during the hearing before us, however, submitted that having regard to the technical details furnished by the applicant and further explained by them during the hearing as well as the rulings of the Authority in the applicant's case on the question of classification of 'Equalizers' and 'Repeaters', the goods in question would be more appropriately classifiable under tariff item 8517 50 99.