Custom, Excise & Service Tax Tribunal
M/S Juniper Networks Solution India Pvt ... vs The Principal Commissioner Of Customs - ... on 20 December, 2024
C/20415 to 20590/2024
CUSTOMS, EXCISE & SERVICE TAX APPELLATE
TRIBUNAL
BANGALORE
REGIONAL BENCH - COURT NO. 1
Customs Appeal No. 20415 of 2024
(Arising out of Order-in-Appeal No. 285-460/2023 dated
20.12.2023 passed by the Commissioner of Customs (Appeals),
Bangalore.)
M/s. Juniper Networks Solution
India Pvt. Ltd.
111 To 115/4, 2nd Floor, Elnath Building, Appellant(s)
Exora Business Park,
Marathahllai Sarjapur Outer Ring Road,
Bangalore - 560 103.
VERSUS
Respondent(s)
Commissioner of Customs
Office of the Assistant Commissioner of Customs,
PAG, Air Cargo Complex,
Bengaluru International Airport,
Devanahalli,
Bengaluru - 560 300.
WITH
(1) Customs Appeal No. 20416 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(2) Customs Appeal No. 20417 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(3) Customs Appeal No. 20418 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(4) Customs Appeal No. 20419 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(5) Customs Appeal No. 20420 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(6) Customs Appeal No. 20421 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(7) Customs Appeal No. 20422 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(8) Customs Appeal No. 20423 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(9) Customs Appeal No. 20424 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(10) Customs Appeal No. 20425 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(11) Customs Appeal No. 20426 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(12) Customs Appeal No. 20427 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
Page 1 of 32
C/20415 to 20590/2024
(13) Customs Appeal No. 20428 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(14) Customs Appeal No. 20429 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(15) Customs Appeal No. 20430 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(16) Customs Appeal No. 20431 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(17) Customs Appeal No. 20432 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(18) Customs Appeal No. 20433 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(19) Customs Appeal No. 20434 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(20) Customs Appeal No. 20435 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(21) Customs Appeal No. 20436 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(22) Customs Appeal No. 20437 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(23) Customs Appeal No. 20438 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(24) Customs Appeal No. 20439 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(25) Customs Appeal No. 20440 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(26) Customs Appeal No. 20441 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(27) Customs Appeal No. 20442 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(28) Customs Appeal No. 20443 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(29) Customs Appeal No. 20444 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(30) Customs Appeal No. 20445 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(31) Customs Appeal No. 20446 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(32) Customs Appeal No. 20447 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(33) Customs Appeal No. 20448 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(34) Customs Appeal No. 20449 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(35) Customs Appeal No. 20450 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(36) Customs Appeal No. 20451 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(37) Customs Appeal No. 20452 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(38) Customs Appeal No. 20453 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(39) Customs Appeal No. 20454 of 2024 (M/s. Juniper
Page 2 of 32
C/20415 to 20590/2024
Networks Solution India Pvt. Ltd.)
(40) Customs Appeal No. 20455 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(41) Customs Appeal No. 20456 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(42) Customs Appeal No. 20457 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(43) Customs Appeal No. 20458 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(44) Customs Appeal No. 20459 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(45) Customs Appeal No. 20460 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(46) Customs Appeal No. 20461 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(47) Customs Appeal No. 20462 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(48) Customs Appeal No. 20463 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(49) Customs Appeal No. 20464 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(50) Customs Appeal No. 20465 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(51) Customs Appeal No. 20466 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(52) Customs Appeal No. 20467 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(53) Customs Appeal No. 20468 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(54) Customs Appeal No. 20469 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(55) Customs Appeal No. 20470 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(56) Customs Appeal No. 20471 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(57) Customs Appeal No. 20472 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(58) Customs Appeal No. 20473 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(59) Customs Appeal No. 20474 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(60) Customs Appeal No. 20475 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(61) Customs Appeal No. 20476 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(62) Customs Appeal No. 20477 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(63) Customs Appeal No. 20478 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(64) Customs Appeal No. 20479 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(65) Customs Appeal No. 20480 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
Page 3 of 32
C/20415 to 20590/2024
(66) Customs Appeal No. 20481 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(67) Customs Appeal No. 20482 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(68) Customs Appeal No. 20483 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(69) Customs Appeal No. 20484 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(70) Customs Appeal No. 20485 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(71) Customs Appeal No. 20486 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(72) Customs Appeal No. 20487 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(73) Customs Appeal No. 20488 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(74) Customs Appeal No. 20489 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(75) Customs Appeal No. 20490 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(76) Customs Appeal No. 20491 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(77) Customs Appeal No. 20492 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(78) Customs Appeal No. 20493 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(79) Customs Appeal No. 20494 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(80) Customs Appeal No. 20495 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(81) Customs Appeal No. 20496 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(82) Customs Appeal No. 20497 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(83) Customs Appeal No. 20498 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(84) Customs Appeal No. 20499 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(85) Customs Appeal No. 20500 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(86) Customs Appeal No. 20501 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(87) Customs Appeal No. 20502 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(88) Customs Appeal No. 20503 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(89) Customs Appeal No. 20504 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(90) Customs Appeal No. 20505 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(91) Customs Appeal No. 20506 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(92) Customs Appeal No. 20507 of 2024 (M/s. Juniper
Page 4 of 32
C/20415 to 20590/2024
Networks Solution India Pvt. Ltd.)
(93) Customs Appeal No. 20508 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(94) Customs Appeal No. 20509 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(95) Customs Appeal No. 20510 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(96) Customs Appeal No. 20511 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(97) Customs Appeal No. 20512 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(98) Customs Appeal No. 20513 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(99) Customs Appeal No. 20514 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(100) Customs Appeal No. 20515 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(101) Customs Appeal No. 20516 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(102) Customs Appeal No. 20517 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(103) Customs Appeal No. 20518 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(104) Customs Appeal No. 20519 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(105) Customs Appeal No.20520 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(106) Customs Appeal No.20521 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(107) Customs Appeal No.20522 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(108) Customs Appeal No.20523 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(109) Customs Appeal No.20524 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(110) Customs Appeal No.20525 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(111) Customs Appeal No.20526 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(112) Customs Appeal No.20527 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(113) Customs Appeal No.20528 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(114) Customs Appeal No.20529 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(115) Customs Appeal No.20530 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(116) Customs Appeal No.20531 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(117) Customs Appeal No.20532 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(118) Customs Appeal No.20533 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
Page 5 of 32
C/20415 to 20590/2024
(119) Customs Appeal No.20534 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(120) Customs Appeal No.20535 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(121) Customs Appeal No.20536 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(122) Customs Appeal No.20537 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(123) Customs Appeal No.20538 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(124) Customs Appeal No.20539 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(125) Customs Appeal No.20540 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(126) Customs Appeal No.20541 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(127) Customs Appeal No.20542 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(128) Customs Appeal No.20543 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(129) Customs Appeal No.20544 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(130) Customs Appeal No.20545 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(131) Customs Appeal No.20546 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(132) Customs Appeal No.20547 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(133) Customs Appeal No.20548 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(134) Customs Appeal No.20549 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(135) Customs Appeal No.20550 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(136) Customs Appeal No.20551 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(137) Customs Appeal No.20552 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(138) Customs Appeal No.20553 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(139) Customs Appeal No.20554 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(140) Customs Appeal No.20555 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(141) Customs Appeal No.20556 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(142) Customs Appeal No.20557 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(143) Customs Appeal No.20558 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(144) Customs Appeal No.20559 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(145) Customs Appeal No.20560 of 2024 (M/s. Juniper
Page 6 of 32
C/20415 to 20590/2024
Networks Solution India Pvt. Ltd.)
(146) Customs Appeal No.20561 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(147) Customs Appeal No.20562 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(148) Customs Appeal No.20563 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(149) Customs Appeal No.20564 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(150) Customs Appeal No.20565 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(151) Customs Appeal No.20566 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(152) Customs Appeal No.20567 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(153) Customs Appeal No.20568 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(154) Customs Appeal No.20569 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(155) Customs Appeal No.20570 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(156) Customs Appeal No.20571 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(157) Customs Appeal No.20572 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(158) Customs Appeal No.20573 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(159) Customs Appeal No.20574 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(160) Customs Appeal No.20575 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(161) Customs Appeal No.20576 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(162) Customs Appeal No.20577 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(163) Customs Appeal No.20578 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(164) Customs Appeal No.20579 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(165) Customs Appeal No.20580 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(166) Customs Appeal No.20581 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(167) Customs Appeal No.20582 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(168) Customs Appeal No.20583 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(169) Customs Appeal No.20584 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(170) Customs Appeal No.20585 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(171) Customs Appeal No.20586 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
Page 7 of 32
C/20415 to 20590/2024
(172) Customs Appeal No.20587 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(173) Customs Appeal No.20588 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(174) Customs Appeal No.20589 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(175) Customs Appeal No.20590 of 2024 (M/s. Juniper
Networks Solution India Pvt. Ltd.)
(All the appeals arise out common of Order-in-Appeal No. 285-
460/2023 dated 20.12.2023 passed by the Commissioner of
Customs (Appeals), Bangalore.)
APPEARANCE:
Mr. Rohit Jain, Advocate with
Mr. Harsh Shah, Advocate for the Appellant
Mr. K.A. Jathin, Deputy Commissioner (AR) with
Mr. Maneesh Akhoury, Asst. Commissioner for the Respondent
CORAM: HON'BLE DR. D.M. MISRA, MEMBER (JUDICIAL)
HON'BLE MRS. R. BHAGYA DEVI, MEMBER
(TECHNICAL)
Final Order No. 21353 - 21528 /2024
DATE OF HEARING: 24.10.2024
DATE OF DECISION: 20.12.2024
PER : R. BHAGYA DEVI
All the appeals arise out common of Order-in-Appeal No.
285-460/2023 dated 20.12.2023 passed by the Commissioner of
Customs (Appeals), Bangalore. Since the issue involved is same,
these are taken up together for hearing and disposal.
2. The Appellant Juniper Networks Solution India Pvt. Ltd. is a
private limited company engaged in import and sale of
networking equipment and provide various support options for
the same in India. The equipment and spares are imported from
the Appellant's holding company M/s Juniper Networks
International BV. Imports were made by the appellant under
provisional assessment. Pending SVB order and once the SVB
final order was issued, the assessments were finalized for 256
Bills of Entry. Aggrieved by the same, the Appellant filed appeals
before the Commissioner (Appeals) against 256 BOEs assessed
Page 8 of 32
C/20415 to 20590/2024
under final assessment during the period from April 2021 to
August 2021. Pursuant to the same, the Orders-in-Appeal Nos.
564 to 820/2021 dated 29.11.2021 allowing the appeals of the
Appellant in accordance with the directions mentioned therein
inter alia requiring reassessment of the 256 BOE in question
after issuance of a speaking order. The proceedings culminated
into issuance of the Order-in-Original No. 372/2022 ('OIO')
where the original authority concurred with views of the
Appellant on classification and rate of duty for some products
and disagreed with views of the Appellant on classification and
rate of duty for products in relation to specified part IDs of
Transceivers, Secured Routers, Modular Interface Cards, Parts of
Security and Rack Mounting Kit. Aggrieved, the Appellant filed an
appeal before Commissioner of Customs (Appeals) and the
Commissioner (Appeals) upheld the classification and rate of
duty. Aggrieved by this order, appellant is in appeal before us.
3. The Learned Counsel submitted that the Appellant is
engaged in the import and sale of networking equipments. The
present appeals are against the classification and rate of duty
against the following products. Against each of these products,
the submissions by the learned Counsel are summarised below:
Sl. Category of goods Classification as per Classification
No. the Impugned OIA as per the
Appellant
1 Transceivers 8517 6290 8517 7090*
2 Modular interface 8517 6290 8517 7090*
cards (MIC)
3 Mini Physical Interface 8517 6290 8517 7090*
Modules (Mini-PIM)
4 Rack Mounting Kits for 8302 4900 8517 7090*
Switch (RMK)
* with effect from 01.01.2022, Tariff Item 8517 7090 has been replaced with
8517 7990
Applicability of exemption notification
Categor Classification & applicable Classification & applicable
Sl.
y of exemption notification as exemption notification as per
No.
goods per the Impugned OIA the Appellant
1 Secured 8517 6290 (Entry no. 20 of 8517 6290 (Entry no. 13N of the
routers the Notification no. 57/2017 - Notification no. 24/2005 -Customs
Customs dated 30.06.2017) dated 01.03.2005)
3.1 Transceivers: The transceivers in question are
optical transceivers which facilitate communication of networking
Page 9 of 32
C/20415 to 20590/2024
equipment with other equipment in internal or external network
through fiber optic cables. The same can only function as part of
a networking equipment and in conjunction with other parts of
networking equipment. It is stated that such transceivers merit
classification under the Tariff Item 8517 7090 as parts of
networking equipment, as opposed to classification as
networking equipment of the Tariff Item 8517 6290 as held vide
the impugned order and claimed that the issue of classification of
transceiver is no longer res integra, since the issue stands
decided in favour of the Appellant by judgment of the Hon'ble
Supreme Court in the matter of Commissioner of Customs vs.
M/s. Reliance Jio Infocomm Ltd. [2023 (2) TMI 1295 - SC
ORDER] whereby, the Hon'ble Supreme Court dismissed the
appeal of the Revenue against the decision of the CESTAT,
Mumbai in case of M/s. Commissioner of Customs, Mumbai
(Air Cargo Import) vs. Reliance Jio Infocomm Ltd. [2022
(8) TMI 76- CESTAT Mumbai] confirming classification of
SFP/SFP+/QSFP transceivers as parts. The relevant extracts
from the Supreme Court order referred above are as under:
"Mr. Balbir Singh, learned Additional Solicitor General, would submit, after
getting instructions, that the classification as has been done in the
impugned order, has been accepted by the Department-Revenue (See
order dated 25.01.2017 passed by Commissioner of Customs and Central
Excise (Appeals), Hyderabad).
In view of the aforesaid fact, the civil appeals are dismissed."
Subsequent to this, in the matter of IBM India Private
Limited vs. Commissioner of Customs (Import), Mumbai
[2024 (4) TMI 972 - CESTAT Mumbai], the CESTAT, Mumbai
had once again confirmed classification of SFP/SFP+/QSFP
optical transceivers under the Tariff Item 8517 7090 as parts of
telecom equipment. The transceivers covered in the appeals are
nothing but SFP/SFP+/QSFP transceivers and squarely covered
by the judicial precedents mentioned above. This is also
substantiated by the screenshots of Juniper website and letter
from subject expert Dr. Giuliano Coli (lead of Juniper Networks'
Optics Global Community Team) submitted by the Appellant.
Page 10 of 32
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Classification of transceivers as parts of networking equipment of
8517 7090 is also supported by letter dated 22.10.2019 issued
by the Telecommunication Engineering Center (TEC), which is
the Technical Wing of the Department of Telecommunications of
Ministry of Communications and top-most expert body to opine
on matters pertaining to telecommunication goods.
3.2 With regard to Modular Interface Cards ('MIC') it
is submitted that Juniper Network's product portfolio includes
various modular and chassis-based routers of MX series. For
modular routers, various components and parts need to be
installed to make it functional. The architecture of such routers
and key components includes Modular Port Concentrators ('MPC')
and Modular Interface Cards (MIC). MPCs provide various online
services of a router and host MIC. The MIC provides physical
connections to various media types. For modular MX routers, the
functionality of receiving and transmitting data packets and
connecting to the network through suitable interfaces cannot be
achieved without MIC. Hence, MIC merits classification under the
Tariff Item 8517 7090 as parts of networking equipment, as
opposed to classification as networking equipment under the
Tariff Item 8517 6290 as held in the impugned order. It is
further claimed the Tribunal in the case of M/s. Vodafone Idea
Limited vs. Principal Commissioner of Customs (Import)
[TS-469-CESTAT-2022(DEL)] wherein it was held that router
line cards are part of routers and cannot be treated as apparatus
and hence, the same are classifiable under the Tariff Item 8517
7090. Similarly in the case of M/s. Vodafone Idea Limited
vs. Principal Commissioner of Customs, New Delhi [2024
(10) TMI 636 - New Delhi], it was held that MPC line cards of
Juniper Networks itself has been treated as parts and was
classified under CTH 8517 7090 and therefore, the classification
of MIC, which are further installed into MPC, as parts need to be
classified under CTH 8517 7090.
3.3 Coming to Mini Physical Interface Modules ('Mini-
PIM') it is stated that the Mini-PIM is part of SRX series of
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Juniper Secured Routers. It provides physical connections
between such SRX Secured Router on one side and a LAN or
WAN network on the other side. They receive incoming packets
and transmit outgoing packets. Therefore, such Mini-PIM are
essential to achieve functionality of the underlying equipment.
Considering the above, the Appellant submits that Mini-PIM
merits classification under the Tariff Item 8517 7090 as parts of
networking equipment, as opposed to classification as
networking equipment of the Tariff Item 8517 6290 held vide the
OIA.
3.4 The Learned Counsel further submits that the Rack
Mounting Kits for switch ('RMK') in question are hardware kits
of metals made for specified Juniper Switch which can be used
for mounting of such Switch safely so as to configure and hold
them for access and efficient operation. It is clarified that such
kits are separately designed for each/compatible product. Since
appropriate mounting is important for efficient and safe
functioning of the equipment, the Appellant submits that RMK
merits classification under CTH 8517 7090, as opposed to
classification under CTH 8302 4900 as held by the Commissioner
in the impugned order.
3.5. It is further submitted that the "Full secured
Routers" in question are essentially fixed form equipment that
consolidate routing, switching, security and next generation
firewall capabilities into single device. This enables the core
function of data packet forwarding along with value added
security and firewall services. However, routing continues to be
the core function of such devices since the security and firewall
function is an additional value-added service which is performed
as an additional step after routing of data. The classification of
such secured 'Routers' under the Tariff Item 8517 6290 is
undisputed. The Appellant submits that the same are eligible for
full exemption from Basic Custom Duty (BCD) by virtue of Sl.
No. 13N of the Notification No.24/2005-Cus. dated 01.03.2005
(as amended from time to time) providing exemption to
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"Routers". It is submitted that the Hon'ble Supreme Court in the
case of Xerox India Limited vs. Commissioner of Customs,
Mumbai [2010 (260) ELT 161 (SC)], while deciding the
classification of a multifunctional printing machine, held that to
determine classification of any multifunctional machine, it is
necessary to inter alia look into the essential character test as
provided in Rule 3(b) of the General Rules of Interpretation.
Since core function of such equipments is routing, considering
the essential character test as provided in Rule 3(b) of the
General Rules of Interpretation (GRI), such equipment ought to
be treated as routers.
4. The Learned Authorised Representative on behalf of
the Revenue made the following submissions:
4.1. The averment of the appellant is that the product is
router, and it should be eligible for benefit under Sl. No. 13N of
Customs Notification No.24/2005-Cus dated 01.03.2005. As
discussed in Para No.21.1 of the Order-in-Original, the models
under import are of NFX Series and SRX Series. NFX series
products are basically network services platform. As per
description available on supplier's official website, the Juniper
Networks NFX150 Network Services Platform is a secure,
automated, software-driven customer premises equipment (CPE)
platform that delivers virtualized network and security services
on demand. The NFX150 architecture integrates routing,
switching, and security functions on a single platform that
optimizes the usage of system resources. NFX 150 models are
available with or without LTE support. Similarly, the Juniper
Networks NFX250 Network Services Platform integrates routing,
switching, and security functions on a single platform, which
allows provisioning secure, fast, custom service delivery on
demand. Therefore, it is evident that NFX series products are not
simple routers, but a Network Services Platforms which integrate
routing, switching, and security functions on a single platform.
Therefore, these products are not eligible for Notification benefits
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under Sl. No. 13N of Notification No.24/2005-Cus dated
01.03.2005 which is only available for routers. Regarding SRX
series products, as per supplier's official website, Supplier has
described SRX series products as Services Gateways which have
features like next-generation firewalls, secure SDWAN, etc. SRX
series products viz. SRX 300, 320, 340, 345, and 380 are next
generation firewall. These are high performance, secure SD-WAN
gateway with superior and reliable WAN connectivity. It
integrates security routing, switching for distributed enterprise
offices in a single device. Remaining SRX products mentioned
above viz. SRX 1500, 4100, 4200, and 4600 are high
performance firewalls. From the above, it is evident that they are
not mere routers as claimed by the importer but an integrated
Services Gateway System, encompassing the features of routing
and switching. Therefore, the SRX series products are not
eligible for Notification benefits under Sl. No. 13N of Notification
No. 024/2005 dated 01.03.2005 which is only available for
routers.
4.2 Optical transceivers are network equipments which
converts electrical signals to light signals and vice versa. It can
either be plugged into or embedded into a network device that is
capable of sending or receiving signal. The goods are imported
as independent products to be used along with supplier's other
network devices and are not part of any device. Appellant's
argument that these are only part of networking equipments
such as router, switch etc., appears to be untenable. As per their
own submissions during adjudication proceedings, these optical
transceivers are used in conjunction with multiple networking
equipments such as router, switch etc. The item under
discussion is an identifiable device having specific functions on
its own to do in the whole networking system. The item appears
to be a device or an assembly which can be further dis-
assembled into parts. It is used along with many networking
equipment's such as Router, Switch etc., and hence it does not
fit into a definition for Part of a particular equipment or device as
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claimed by the importer. In para 9.37 of DGFT policy, the word
"part" is defined as an element of a sub-assembly or assembly
not normally useful by itself, and not amenable to further
disassembly for maintenance purposes. Since the subject device
is a network device having specific function, it merits
classification as apparatus under CTH 85176290. CESTAT
Mumbai in Reliance Jio Infocomm case has decided the matter
based on the decision of Commissioner (Appeals), Hyderabad as
having been accepted by the department without delving much
into the merits of the case. The Hon'ble Supreme Court has also
dismissed the appeal accordingly but needs to examined in detail
based on the specifications.
4.3 Module Interface Cards which are in dispute have the
model nos. MIC3-3D-10XGE-SFPP, MIC-3D-20GE-SFP, MIC-3D-
20GESFP-E, MIC-3D-2XGE-XFP, MIC-3D-4XGE-XFP, MIC-MRATE.
As per the information available in supplier's website these are
Modular Interface Cards (MICs) capable of providing physical
connections to various network media types. MICs allow different
physical interfaces to be supported on a single line card. MICs of
different media types can be installed on the same router as long
as router supports those MICs. MICs receive incoming packets
from the network and transfer outgoing packets to the network
and act as a network interface card. As per Explanatory Notes
(II)(G) of heading 85.17 which includes other communication
apparatus viz. network interface cards, modems, routers,
bridges, hubs, repeaters and channel to channel adaptors,
multiplexers etc., 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, and thus are classifiable under 851762. As these
Modular Interface Cards (MICs) are capable of providing physical
connections to various network media types, subject goods are
classifiable under 85176290. Since these interface cards are
covered under other communication apparatus of subheading
8517.62, which provides for "Machines for the reception,
conversion and transmission or regeneration of voice, images, or
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other data, including switching and routing apparatus", these
cards may not be classified under "Parts" of Subheading
8517.70/8517.79. As these Modular Interface Cards (MICs) are
capable of providing physical connections to various network
media types, subject goods are classifiable under 85176290 and
notification benefit under Sl. No. 20 of Notification No. 057/2017
dated 30.06.2017 is applicable.
4.4 A Mini-Physical Interface Module (Mini-PIM) is a
network interface card (NIC) that is installed on the SRX Series
Services Gateway to provide physical connections to a LAN or a
WAN. The Mini-PM receives incoming packets from the network
and transmits outgoing packets to the network. SRX-MP-LTE-AA,
SRX-MP-LTE-AE: These products are LTE Mini-Physical interface
Module (Mini-PIM) provides wireless WAN support on the
SRX300 Series and SRX550 High Memory Service Gateways.
This Mini-PIM contains an integrated modem and operates over
3G and 4G networks. It also supports up to two SIM cards and
can be installed in any of the Mini-PIM slots on the services
gateways. As per explanatory notes (II)(G) of Heading 85.17
which includes other communication apparatus viz. network
interface cards, modems, routers, bridges, hubs, repeaters and
channel to channel adaptors, multiplexers etc., 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, and are classifiable under
851762. Since Mini-Physical Interface Module (Mini-PIM) is a
network interface card (NIC) and these are included in other
apparatus as per explanatory notes (II)(G) of heading 85.17,
Mini-Physical Interface Module (Mini-PIM) merit classification
under CTH 85176290.
4.5 Rack Mounting Kits for secured routers are basically
Rack Mount Kit for PoE or non-PoE SRX service gateways with or
without Power Supply Adapter Tray. These are basically rack
mounting kit i.e., an accessory for installing SRX service
gateways in a rack, and hence, these items cannot be considered
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or categorized as part of secured router as claimed by the
importer. It is pertinent to mention that as per General Rules for
the Interpretation of the Harmonized System, Rule 1 says that
classification shall be determined according to the terms of the
headings and any relative Section or Chapter Notes. Further Rule
3(a) says the heading which provides the most specific
description shall be preferred to headings providing a more
general description. As per section note 1(k) of Section XVI,
articles of chapter 82 or chapter 83 are not covered in section
XVI (chapter 84, 85). Hence, these goods do not qualify to be
classifiable under CTH 8517 62 90 as originally assessed nor
under CTH 8517 70 90/ 8517 79 90 as claimed by the importer.
As tariff heading 8302 specifically covers base metal mounting
kits, these goods appear to more appropriately classifiable under
83024900 and liable to duty applicable under the said CTH.
5. Heard both sides and perused the documents placed on
record. The issues are twofold one is regarding classification and
the other is regarding the eligibility of the benefit of the
exemption notification No.24/2005 dated 01.03.2005 as shown
in the table below.
Sl. Product As upheld in the As claimed by the Amount of
No. category Impugned Order Appellant differential
for which BCD+SWS
Appeal is (INR)
being filed Classifica Effectiv Classificati Effecti
tion e rate on ve rate
of BCD of BCD
1 Transceiver 8517 6290 20% 8517 7090 Nil 2,00,92,869
Modular
2 interface 8517 6290 10% 8517 7090 Nil 6,43,692
cards (MIC)
Mini Physical 8517 6290 20%/10 8517 7090 Nil 12,45,169
3 Interface % merit
module rate
(Parts of
security)
4 Full Secured
Routers 8517 6290 10% 8517 6290 Nil 61,92,631*
5 Rack
Mounting 8302 4900 Merit 8517 7090 Nil 61,021
Kits for rate
switch
*Sl.No.13N of notification No.24/2005 dated 01.03.2005.
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Let's examine each of these products:
5.1 Transceivers: The transceivers are optical
transceivers which facilitate communication of networking
equipment with other equipment in internal or external network
through fiber optic cables and functions as part of a networking
equipment and in conjunction with other parts of networking
equipment. The Appellant's claim is that such transceivers merit
classification under the CTH 8517 7090 as parts of networking
equipment, as opposed to classification as networking equipment
under CTH 8517 6290 as held by the Commissioner in the
impugned order. As per the technical writeup, the items
imported are transceiver are primarily Small Form Pluggable
transceivers (SFP) to be used with various networking
equipment. The classification of this product stands settled in the
case of Commissioner of Customs-Mumbai (Air Cargo
Import) vs. Reliance Jio Infocomm Ltd. 2022 (8) TMI 76 -
CESTAT Mumbai, dated 29.07.2022, Where the Tribunal
observed as follows:
"6. The original authority has held that the impugned goods cannot be
treated as parts but instead are themselves machines. The appellant has
explained that the product SFP is a standalone pluggable module which
can be plugged into any computer or networking such as Ethernet switch,
IP Routers etc and could act as connector providing interface between
two domains i.e. electrical and optical; that it gives information about
optical power levels and electrical supply parameters, but only when SFP
is plugged into Ethernet switch which has the requisite software to report
these values, The appellant have demonstrated that after SFP trans
receiver is inserted into the Cisco switch which has lockable front doors,
the doors are to be closed and the functioning of the apparatus can start
only thereafter. Therefore, it is found that the SFP trans-receiver itself
does not lead to operation of the switch. The original manufacturer of
impugned goods i.e. Cisco, Netherlands vide their letter dated 03.08.2015
has clarified that all Cisco nexus switches consist of a chassis with
designated slots for power supply module, fan module tray, supervisor
modules, fabric modules and input/output (1/0) modules and that 1/0
module is one of the parts of Ethernet switch providing ethernet
interfaces of 1/10/40/100 Gbps using Small Form Factor Pluggable
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(SFP/SFP+/QSFP) to inter-connect switches, servers and routers in a
data-center or campus network. It has also been stated that the 1/0
module cannot function on its own in a stand-alone mode because it
lacks power (provided by the chassis), switching capability (provided by
the fabric through the mid-plane) and the control plane for decision of
switching/routing packets between ports (provided by the supervisor
module). In view of the above technical details made available from the
manufacturers of the impugned goods, it is evident that SFP is not
equipment which on its own is capable of providing the essential function
of transmission and reception of optical data. It is a part of 1/0 card
module used as part of the ethernet switch providing Ethernet interfaces
to inter-connect switches, servers and routers in a data center or campus
net-work. The original authority has, however, concluded that as the SFP
modules have Digital Optical Monitoring (DOM) capability to monitor
realtime parameters of the module, such as optical output power, optical
input power, temperature, laser bias current, transceiver supply voltage
etc they are distinct equipment/machines having specific functions of
transmission and reception of optical data. However, it has not been
brought forth as to whether the SFP can independently handle the above
functions without being attached to the Ethernet switch as explained by
the appellant in the submissions in these proceedings. The manufacturer
Le. Cisco themselves have clarified that SFPs along with 1/O card module
are the parts of Ethernet switch providing Ethernet interface to
interconnect switches, servers and routers in a data-center or campus
network. It is noted that the original authority vide para 14 of impugned
order has held that SFP is a compact, hot-pluggable used for both
telecommunication and data communication applications and that it
interfaces a network device switch, router, media converter to a fiber
optic or copper networking cable, thus accepting that SFP functions as
part of a network and not otherwise. Therefore, taking into account the
appellant's explanation and the clarification issued by the original
manufacturer of the impugned goods who are reputed persons it is to be
held that SFP is part of I/O card module of Ethernet switch apparatus
which could function only when connected with Ethernet switch providing
interface between two domains i.e. electrical and optical. As such, they
are parts and are correctly classifiable under CTH 8517 7090 of the
Customs Tariff. As regards the treatment of the impugned goods as OTN
products by the original authority, I find that the original manufacturer
Le. Cisco have categorically stated that the impugned goods are not OTN
products and instead are interface and modules goods which is consistent
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with the literature on their website. It is noted that the OTN products
provide for functionality of transport, multiplexing, switching,
management, supervision and survivability of optical channels carrying
client signals, whereas as explained by the appellant and the original
manufacturer, the impugned goods do not perform such functions.
Therefore, I hold that the impugned goods i.e. SFPs are classifiable as
being parts of telecom equipment i.e. Ethernet switch falling under CTH
8517 7090 and thereby are entitled to the benefit of Notification 24/2005-
Cus dated 01.03.2005 as claimed by the appellant. Accordingly the order
passed by original authority denying the benefit of exemption is also not
correct and is liable to be set aside."
6. We also find that learned Commissioner (Appeals), Mumbai vide order
dated 30.08.2018 found after discussing the relevant Chapter Heading of
8517 of Customs Tariff Act, 1975 as follows: -
"11. I find that the above information as available in the product
catalogue published by the manufacturer supplier clearly suggests
that all four items are parts of Alcatel Lucent 1830 Photonic
Service Switch-32 (PSS-32) and therefore shall be classifiable as
parts under 85177090 and 85177010. I also find that for other
parts and cards imported in the same consignment the Deputy
Commissioner of Customs has assessed the goods under heading
85177090 and 85177010 respectively. The Deputy Commissioner
of Customs ought to have extended the same treatment to the
impugned goods. Even in the catalogue goods have been shown
as parts/spares with exact part numbers of PSS-32 and the
appellant in its submission has given details where on
invoice/packing list the impugned goods have been mentioned as
parts with specific part number. I also find that goods have been
subjected to 100% examination and the examinations report
confirms all goods to be as per import invoice. It also endorses
"card for DWDM". Besides, presently in terms of Customs
Notification 24/2005 dated 01 03 2005 Sr. No. 13S goods of
heading 85177010 and in terms of Customs Notification 57/2017
Sr. No. 5, goods of heading 35177090 are exempted from BCD
unconditionally. All these details are sufficient to assume the
legislative intension to exempt parts of Telecommunication
Equipment which themselves are not machine and from BCD and
therefore the action on the part of assessing officer to classify the
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impugned goods i.e. "Parts" as "Other Machine" under CTH
85176290 cannot be held As legal and proper."
7. We also find that the department has not filed any appeal against the
order passed by learned Commissioner (Appeals), Hyderabad and
whereas no appeal has been filed against the order passed by
Commissioner (Appeals), Mumbai. We find that it is not open that the
Department to take a different stand on the same issue in Mumbai and
Hyderabad. Such a differential classification of the impugned goods
imported at different places would negate the very purpose of the Tariff
Act on the one hand and would cause avoidable litigation for the
importers on the other. We find that the findings given by the ld.
Commissioner (Appeals) vide the order cited above are quite elaborate
and reasoned which were followed by the learned Commissioner
(Appeals), Mumbai in the impugned order. Therefore, we find that no
case has been made out by the Department against the impugned orders
and accordingly, we find that the impugned orders do not require any
interference by this Bench."
5.2 The above decision of the Tribunal was upheld by the
Supreme Court as reported at 2023 (2) TMI 1295 - SC dated
27.02.2023 where in their Lordships observed as follows:
"1. Delay condoned.
2. Mr. Balbir Singh, learned Additional Solicitor General, would submit,
after getting instructions, that the classification as has been done in the
impugned order, has been 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."
5.3 In view of the above, we confirm the classification of
the 'transceivers' under Chapter Heading 8517 7090 as parts of
network equipment.
6. With regard to 'Full secured Router', the appellant
accepts the classification under Chapter Heading 8517 6290 of
the Customs Tariff Act, 1985. The only dispute is the eligibility of
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the benefit of the Notification No.24/2005 (13N) as claimed by
the appellant or Notification No.57/2017-Cus. dated 30.06.2017
as held by the Revenue.
Notification-Customs Customs -Tariff
Exemption to specified goods to Chapter 36, 84, 85 and 90 and
all goods for the manufacture thereof-
[Notification No. 24/05-Customs] Dated 1.3.2005
In exercise of the powers conferred by sub-section (1) of section 25
of the Customs Act, 1962 (52 of 1962), the Central Government, on being
satisfied that it is necessary in the public interest so lo do, hereby
exempts the following goods of the description as specified in column (3)
of the Table below and falling under the heading, sub-heading or tariff-
item of the First Schedule to the Customs Tariff Act 1975 (51 of 1975) as
specified in the corresponding entry in column (2) of the said Table,
when imported into India, from the whole of the duty of customs
leviable thereon under the said First Schedule, namely:-
Table
Sl. Heading, sub- Description
No. heading or tariff
item
1 2 3
1 3818 00 All goods
.....
...... ....... 10 [2 8443 31 00 All goods 6 [13N 8517 62 90 Routers]
Notification-Customs - Customs -Tariff GOVERNMENT OF INDIA MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) Notification No. 57/2017- Customs New Delhi, the 30th June, 2017 G.S.R. 798 (E). - In exercise of the powers conferred by sub-section (1) of Section 25 of the Customs Act, 1962 (52 of 1962), the Central Government, on being satisfied that it is necessary in the public interest so to do, hereby exempts the goods of the description as specified in column (3) of the Table below, as the case may be, and falling within the Chapter, heading, sub-heading or tariff item of the First Schedule to the Customs Tariff Act, 1975 (51 of 1975) as are specified in the corresponding entry in column (2) of the said Table, when imported into Page 22 of 32 C/20415 to 20590/2024 India, from so much of the duty of customs leviable thereon under the said First Schedule as is in excess of the amount calculated at the standard rate as specified in the corresponding entry in column (4) of the said Table subject to any of the conditions, as specified in the Annexure to this notification, the condition number of which is mentioned in the corresponding entry in column (5) of the said Table.
Table
Sl. Chapter or Description of goods Standard Condition
No. Heading or rate No.
Sub-
heading or
tariff item
(1) (2) (3) (4) (5)
1. 4016 99 90 The following goods for use in 60[10%] 1 manufacture of cellular mobile phones, namely:-
(i)Microphone Rubber Case
(ii) Sensor Rubber Case/ Sealing Gasket including sealing gaskets/cases from Rubbers like SBR, EPDM, CR, CS, Silicone and all other individual rubbers or combination/combination of rubbers 61 [1A Any Chapter Inputs or parts for use in Nil 1] manufacture of goods mentioned at Sl. No. 1 above ....
.... .... ... ... 18 [20 8517 62 All goods other than the 10% -] 90 or following goods, namely:- 8517 69 90 (a) Wrist wearable devices 64[(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 of 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 controllers and session border controllers; (g) Carrier Ethernet Switch, Packet Transport Node (PTN) products, Multiprotocol Label Switching Transport Profile (MPLS-TP) products; Page 23 of 32 C/20415 to 20590/2024 46 [(h) Multiple Input/Multiple Output (MIMO) products; (i)Long Term Evolution (LTE) products] 6.1 Full secured routers as declared by the appellant are
network services platform and as per the technical literature, these products integrate routing, switching and security functions on a single platform that optimizes the usage of system resources. The appellant admits the fact that the routing is clearly the essential function of the secured routers with additional features enhancing the quality and since, the essential function is routing and claims the benefit of the Notification meant for routers under Sl. No.13N of Notification No.24/2005 which is meant for routers. The Commissioner in the impugned order based on the technical writ-up filed by the appellant and based on the products described in their website observes that these routers are having multiple functionalities including routing and are used as network service platform as well as integrated services gateway system encompassing the features of routing and switching. Since these additional features are not being disputed by the appellant, they cannot be considered a simplicitor router. The essentiality function claimed by the appellant can only help them in classification of the product but not in extending the benefit of the notification. As the exemption claimed by the appellant is clearly meant for simplicity routers and not for "Full Secured Router" with multifunctional features, the benefit of the Notification cannot be extended under Notification No.24/2005 (Sl.No.13N).
7. Modular Interface Cards (MIC) as the name itself suggests that they are network interface cards capable of providing physical connections to various networks, media types (image shown below). The Commissioner in the impugned order had reproduced the technical literature based on the supplier's website. The Modular Interface Cards (MICs) capable of providing physical connections to various network media types. MICs allow different physical interfaces to be supported on a Page 24 of 32 C/20415 to 20590/2024 single line card. MICs of different media types and can be installed on the same router as long as router support these MICs. MICs receive incoming packets from the network and transfer outgoing packets to the network and act as a network interface card. These Characteristics of the MIC are not disputed by the appellant but relied on the decision in the case of M/s. Vodafone Idea Limited vs. Principal Commissioner of Customs (Import) (supra) to claim that this product is rightly classifiable under CTH 8517 7090 as parts and not as apparatus under CTH 8517 6290 as claimed by the revenue.
8. Similarly, the Mini Physical interface module (Mini PIM) is claimed to be part of secured router by the appellant and required to be classified under Chapter Heading 8517 7090. As per the appellant's supplier official website "a Mini Physical Interface Module (Mini-PIM) is a Network Interface Card (NIC) that is installed on the SRX series services gateway to provide physical connections to a LAN or a WAN. The Mini PIM receives incoming packets from the network and transmits outgoing packets to the network. These products are LTE Mini- Physical Interface Module provide wireless WAN support on the SRX300 series and SRX500 High memory service gateways. This Mini PIM contains an integrated modem and operates over 3G and 4G networks. It also supports up to two SIM cards and can be installed in any of the Mini PIM slots on the services gateways".
8.1 It is also observed that on the supplier's website, this product is mentioned "as Expansion Module supported on the NFX150-s1 & NFX150-s1E models. These are LTE modules Page 25 of 32 C/20415 to 20590/2024 with support features like automatic switch overs between service providers through dual SIMS, multiple service provider and access point name (APN) profiles, LTE carrier aggregation, SIM security functions such as SIM lock, unlock and PIN change, and can be configured in three modes." Thus, these features provide additional scope of benefits and is an expansion module which are independent of the NFX150 series of security products. It is also admitted that the security products otherwise are also functional on its own and these Mini PIM provide additional and enhanced security features.
8.2 It is to be examined as to how these products both Module Interface Cards (MIC) and Mini Physical Interface Module (Mini-PIM) stand classified in view of the technical literature as discussed above and taking into consideration the criteria for classification based on the Section Notes, Chapter Headings and the HSN Explanatory notes. The respective disputed chapter headings are reproduced below:
Tariff Item Description of goods Unit Rate of Duty (1) (2) (3) (4) (5) 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
- Telephone sets, including
telephones for cellular networks or
for other wireless networks:
- Line telephone sets with
cordless handsets:
8517 11 - Push button type -
- Other -
8517 11 10 - Telephones for cellular u Free
8517 11 90 networks or for other wireless u Free
8517 12 networks: -
- Push button type -
8517 12 10 - Other u 10%
8517 12 90 - Other: u 10% -
8517 18 - Push button type
8517 18 10 - Other u Free -
8517 18 90 - Other apparatus for u Free
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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): -
- Base stations u 10%
8517 61 00 - Machines for the reception,
8517 62 conversion and transmission or u -
generation of voice, images or other
data, including switching and
routing apparatus: Free
- PLCC equipment Free
8517 62 10 - Voice frequency telegraphy u Free -
8517 62 20 - Modems (modulators- u Free -
8517 62 30 demodulators) u Free -
- High bit rate digital
8517 62 40 subscriber line system (HDSL) u Free -
- Digital loop carrier system Free
8517 62 50 (DLC) u -
8517 62 60 - Synchronous digital Free -
hierarchy system (SDH)
8517 62 70 - Multiplexers, statistical u Free -
multiplexers
8517 62 90 - Other u 10% -
8517 69 - Other:
8517 69 10 - ISDN System u Free -
8517 69 20 - ISDN terminal adaptor u Free -
8517 69 30 - Routers u Free -
8517 69 40 - X 25 Pads u Free -
8517 69 50 - Subscriber end equipment -
8517 69 60 - Set top boxes for gaining u
access to internet u Free
8517 69 70 - Attachments for telephones 10% -
8517 69 90 - Other -
8517 70 - Parts:
8517 70 10 - Populated, loaded or stuffed u Free -
printed circuit boards
8517 70 90 - Other kg 10% -
8.3 The HSN Explanatory notes under chapter heading 8517
under communication apparatus reads as follows:
(G) Other communication apparatus.
This group 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 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.
Page 27 of 32 C/20415 to 20590/2024This group includes:
(1) Network interface cards (e.g., Ethernet interface cards).
(2) Modems (combined modulators-demodulators).
(3) Routers, bridges, hubs, repeaters and channel to channel adaptors.
(4) Multiplexers and related line equipment (e.g., transmitters, receivers or electro-optical converters).
(5) Codecs (data compressors/decompressors) which have the capability of transmission and reception of digital information.
(6) Pulse to tone converters which convert pulse dialled signals to tone signals.
Section XVI subclause (2) of the Central Excise Tariff Act reads as:
"2. Subject to Note 1 to this Section, Note 1 to Chapter 84 and to Note 1 to Chapter 85, parts of machines (not being parts of the articles of heading 8484, 8544, 8545, 8546 or 8547) 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 8409, 8431, 8448, 8466, 8473, 8487, 8503, 8522, 8529, 8538 and 8548) 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 8517 and 8525 to 8528 are to be classified in heading 8517, and parts which are suitable for use solely or principally with the goods of heading 8524 are to be classified in heading 8529;
(c) all other parts are to be classified in heading 8409, 8431, 8448, 8466, 8473, 8503, 8522, 8529 or 8538 as appropriate or, failing that, in heading 8487 or 8548.
3. Unless the context otherwise requires, composite machines consisting of two or more machines fitted together to form a whole and other machines designed for the purpose of performing two or more complementary or alternative functions are to be classified as if consisting Page 28 of 32 C/20415 to 20590/2024 only of that component or as being that machine which performs the principal function.
4. Where a machine (including a combination of machines) consists of individual components (whether separate or interconnected by piping, by transmission devices, by electric cables or by other devices) intended to contribute together to a clearly defined function covered by one of the headings in Chapter 84 or Chapter 85, then the whole falls to be classified in the heading appropriate to that function.
8.4 In view of the above, if the product is capable of contributing a clearly defined function even if it functions along with the individual components connected through electrical or other devices, it stands classified under appropriate heading depending upon its function. As seen from the Technical Literature, the products are Network Interface Cards. The Network Interface Card as per the various dictionary definitions as reproduced from the decision in the case of M/s. Vodafone Idea Limited vs. Principal Commissioner of Customs (Import) (supra) is defined as follows: "Network Interface Cards' as a printed circuit board comprising electronic circuitry for the purpose of connecting a workstation to LAN. NIC usually is in the form of a card that fits into one of the expansion slots inside a PC. Alternatively, it can fit into a slot of a MAU (multi- station access unit), which serves multiple and attached devices such as workstations and printers. In the context of IEEE standards, NICs operate at the MAC (medium access control) layer. In the context of the OSI reference model, NICs is operated at Layer 1 (Physical Layer) and 2 (Data Link Layer). The basic job of the NIC is to take data from the transmitting workstation, form it into the specific packet format demanded by the LAN protocol you are running (e.g. Ethernet or Token ring), and present it to the shared medium (usually a cable). On the receiving end, the process is reversed, of course. Hard coded into the NIC at the time of manufacture is a MAC address, unique in all the world to that NIC card; the MAC address effectively identifies the LAN attached device with which it is associated. A NIC works with the network software and Page 29 of 32 C/20415 to 20590/2024 computer operating system to transmit and receive messages on the network."
8.5 The Tribunal further held that "Thus, Network Interface Card is effectively a translator which allows a computer to communicate with a network by translating the output of the computer into a format understandable by the network and vice versa. If a computer is not to be connected to a network, there is no need for NIC of computer to function. Computer is complete in itself and does its job of data processing without any need for NIC."
8.6 In the instant case, based on the description and the Technical Literature placed on record, it is clear that the said products are used in connecting the network equipments and can be used in any network equipment unlike in the case of Vodaphone where the line cards are used only for routers meant for M/s.CISCO. Since the product described above is nothing but a network interface card it is rightly classifiable under chapter heading 85176290.
8.7 The decision relied upon by the appellant was classifying the product "Router Line Cards" where the classification by the Revenue was under Customs Tariff Item 8517 69 90 of the Customs Tariff Act, 1962 instead of CTH 8517 7090 as claimed by the appellant. This decision is clearly distinguishable as observed by the Tribunal as follows:
"34. Router Line Cards are Populated PCBs as they are printed circuit boards mounted with various active and passive electronic elements. Therefore, these cards can be classified under CTI 8517 70 10, which covers 'populated, loaded or stuffed printed circuit boards."
9. Rack Mounting Kit meant for secured router as explained in their technical literature are basically rack mounting kit for POE or non-POE SRX service gateways with or without power supply adapter tray. These are basic racks mounting kit is an accessory for installing SRX service gateways in a rack and hence, these items cannot be considered as part of a secured Page 30 of 32 C/20415 to 20590/2024 router as claimed by the importer. The Rack Mounting Kit is an accessory for Ethernet switch and are associated with functioning of switch and thus, not part of a switch and since, the racks are specifically covered under Chapter Heading 8302 4900, the same are rightly classified under this Heading by the authorities. Moreover, as per Section Note 1(k) of Section XVI, Articles of Chapter 82 or Chapter 83 are not covered under Section XVI (84,85) as reproduced below:
Section XVI Machinery and Mechanical Appliances; Electrical Equipment; Parts Thereof; Sound Recorders and Reproducers, Television Image and Sound Recorders and Reproducers, and Parts and Accessories of Such Articles Notes
1. This Section does not cover :
(a) transmission or conveyor belts or belting, of plastics of Chapter 39, or of vulcanised rubber (heading 4010), .............................
(k) articles of Chapter 82 or 83;
10. In view of the above discussions, based on the technical literature of the products and the decisions discussed thereon, we find that the product 'Transceivers' are rightly classifiable under Chapter Heading 8517 7090 as 'parts of networking equipments' as claimed by the appellant. The 'Modular Interface Cards' (MIC) and 'Mini Physical Interface Modules' (Mini-PIM) are classified under Chapter Heading 8517 6290 as they are functional as Network Interface Cards (NIC) as seen from their Technical Literature. For the 'Full Secured Routers', the benefit of the Notification No.24/2005 dated 01.03.2005 is denied or the reason that admittedly they are not simplicitor routers but multifunctional routers.
Page 31 of 32 C/20415 to 20590/2024Finally, the 'Rack Mounting Kits' which are used for mounting the switches are specifically covered under Chapter 83 and excluded under Chapters 84 and 85, hence, rightly classified under Chapter Heading 8302 4900.
11. In view of the above, the impugned order is disposed of on above terms.
(Order pronounced in Open Court on 20.12.2024.) (D.M. MISRA) MEMBER (JUDICIAL) (R. BHAGYA DEVI) MEMBER (TECHNICAL) rv Page 32 of 32