2025 (7) TMI 1213 - AAR - Customs

Correct classification of the product PLC Splitters under the Customs Tariff of India? - to be classified as a machine under Tariff Sub-Heading 8517 62 for reception conversion and transmission or regeneration of voice images or other data or to be classified as an apparatus for transmission or reception of voice images or other data under Tariff Sub-Heading 8517 69? - HELD THAT - There are no reason to not accept the classification of the product PLC Splitter under Heading 8517 and more particularly under 85177990 as suggested by the applicant and also supported by case laws where similar products were under consideration for classification. Upon examination it is observed that the ruling in the present case does not contain any technical data proprietary data or commercially confidential information which is unique to the applicant. Furthermore the details of the product under considerations are publicly available on various open-source sites - the request for confidentiality does not warrant consideration in the present case as the ruling does not reveal any sensitive or commercially confidential information requiring protection under Regulation 27 of the CAAR Regulations 2021 as amended.

Summary

ISSUES:

Whether the product "PLC Splitters" qualifies as a "machine" under Tariff Sub-Heading 8517 62 for reception, conversion and transmission or regeneration of voice, images or other data.Whether the product qualifies as an "apparatus" for transmission or reception of voice, images or other data under Tariff Sub-Heading 8517 69.Whether the product is classifiable as "parts" of other apparatus for transmission or reception of voice, images or other data under Tariff Sub-Heading 8517 79.Interpretation and application of General Rules of Interpretation (GRI) and relevant Section/Chapter Notes for classification of the product under Customs Tariff.Whether the request for confidentiality of the advance ruling is justified under Regulation 27 of the Customs Authority for Advance Rulings Regulations, 2021.

RULINGS / HOLDINGS:

On the question of classification under Tariff Sub-Heading 8517 62, the product does not qualify as a "machine" since it does not perform "reception, conversion and transmission" functions cumulatively; it is a passive element that only splits signals without converting data/signals from one form to another.The product is not an "apparatus" under Tariff Sub-Heading 8517 69 because it is not a "compound instrument or chain of series of instruments designed to carry out a specific function" and does not perform "transmission or reception" of data between two points; it merely splits signals internally.The product is classifiable as "parts" under Tariff Sub-Heading 8517 79 because it is "a part of transmission or reception apparatus," facilitating transmission or reception by splitting signals, and cannot function independently; thus, it falls under "parts of other apparatus for the transmission or reception of voice, images or other data."Application of Section Note 2 to Section XVI confirms that parts "suitable for use solely or principally with a particular kind of machine" are classified with those machines; since the product is principally used with Heading 8517 goods, it is classified under 85177990.The request for confidentiality of the ruling is denied as the ruling does not contain any "technical data, proprietary data or commercially confidential information" unique to the applicant, and product details are publicly available; therefore, protection under Regulation 27 is not warranted.

RATIONALE:

The classification is governed by the General Rules of Interpretation (GRI) under the Customs Tariff Act, 1975, particularly Rule 1 which mandates classification according to the terms of headings and relevant Section or Chapter Notes.Interpretation of "machine" and "apparatus" follows dictionary definitions and judicial precedents, including the Supreme Court's interpretation that "apparatus" means a compound instrument or series of instruments designed to carry out a specific function.The product's passive nature and inability to perform active data conversion or transmission preclude classification under headings for machines or apparatus performing such functions.Section Note 2 to Section XVI provides the legal framework for classification of parts, emphasizing classification with the principal machines they serve when not specifically covered elsewhere.Precedents from tribunal and Supreme Court rulings on similar products (e.g., Splitters, SFP modules) consistently classify such passive components as parts under Heading 8517, reinforcing the present ruling.The denial of confidentiality request is based on Regulation 27 of the Customs Authority for Advance Rulings Regulations, 2021, balancing transparency and protection of commercially sensitive information, with no unique confidential data found in this ruling.