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2021 (10) TMI 1416 - AAR - CustomsClassification of goods sought to be imported - data centre switch router models - applicability of Sr. No. 13N of Notification No. 24/2005- Customs, dated 01.03.2005 and Sr. No. 20 of Notification No. 57/2017-Customs, dated 30.06.2017 - HELD THAT:- Switching fabric and the routing component together make up the composite platform/system. Section Note 3 to Section XVI provides guidance for the classification of 'composite machines/multifunction machines; the said Section Note 3 states, "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 only of that component or as being that machine which performs the principal function". The said products are principally used as a noncarrier ethernet switch as evident from the product catalogue. Therefore, the said products are classifiable as switches - It is a settled position of law that notification should be read and construed strictly. It is apparent that notification benefit is only available to routers. The services and standards of carrier ethernet have been defined by the Metro Ethernet Forum (MEF). From the product catalogue, it is clear that the instant products lack some essential features such as MPLS-TP, E-LAN services, MEF certification, etc. Carrier-class ethernet switches are generally used in telecommunication networks while non-carrier ethernet switches are used at homes/enterprises. From the product catalogue, it appears that the impugned devices lack most of these essential features - As per the Department of Telecommunication, classification of ethernet switches into carrier ethernet switch and enterprise ethernet switch would be difficult as there may be overlapping features and that they may be classified based on the ultimate user. Therefore, if the impugned products are intended to be used as enterprise switches, then they are eligible for benefit under Sr. No. 20 of Notification No. 57/2021-Customs. The imported goods are classifiable under sub-heading 85176290 of the first schedule to the Customs Tariff Act, 1975 and would be eligible to avail benefit of Sr. No. 20 of Notification No. 57/2021-Customs, dated 30.06.2017, however, benefit under Sr. No. 13N of Notification No. 24/2005-Customs, dated 01.03.2005 is not available.
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