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2022 (9) TMI 594 - AT - CustomsBenefit of exemption from Import duties - Classification of imported goods - Wireless Access Points [WAP] - to be classifiable under Customs Tariff Item [CTI ] 8517 62 90 or otherwise? - period 11.07.2014 to 30.06.2017 - exemption under Serial No. 13 of the notification dated 01.03.2005, as amended by notification dated 11.07.2014 - HELD THAT:- India is a signatory to the Information Technology Agreement [ITA] dated 13.12.1996 by the World Trade Organization. The ITA requires each participant to eliminate and bind customs duties at zero for all products specified in the Agreement. India signed the Agreement on 01.07.1997. Pursuant to ITA, India introduced the notification. At the time of introduction, all goods falling under CTH 8517 were exempted from payment of duties. In 2014, on specified telecommunication products that were not covered under the ITA, the Government imposed customs duties by notification dated 11.07.2014. The Finance Minister's Budget Speech for the year 2014-15 and Tax Research Unit letter dated 10.07.2014 clarify that BCD on specified telecommunication products not covered under the ITA was being increased from NIL to 10%. As WAP is an Information Technology product and is specifically covered under the ITA as ‘Network Equipment’ in Attachment B, the intention was clearly not to exclude WAP imported by Ingram Micro - Imported WAP is a networking equipment working in LAN connecting Wi-fi enabled devices such as laptops, smartphones, tablets, etc. to a wired network. Thus also, imported WAP is entitled to the exemption from the whole of the customs duties under the ITA. It is also well settled law that an exclusionary clause in an exemption notification should be strictly construed and must be given a narrow meaning so as to not frustrate the intention behind the exemption notification. WAP imported by the appellant works on technology and does not support LTE standard. Ingram Micro was, therefore, justified in claiming exemption from the whole of the customs duty under Serial No. 13 (iv) of the notification. There is, therefore, no infirmity in the order dated 23.12.2019 passed by the Additional Director. Appeal dismissed - decided against Revenue.
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