TMI Blog2006 (10) TMI 9X X X X Extracts X X X X X X X X Extracts X X X X ..... spondent-assessee (for short the Respondent) should be considered as 'Base Transceivers Station (BTS) ancillary equipment' in order to be given the benefit of exemption Notification No.11/97-Cus., dated 1-3-1997; as amended by Notification No. 51/97, dated 2-6-1997 Exemption Notification and its relevant entries 2. The Central Government in exercise of powers conferred by sub section (1) of Section 25 of the Customs Act, 1962 issued a notification No. 11/97, and 1-3-1997 in public interest to exempt certain goods mentioned in the table of the notification read with relevant list appended thereto from payment of duty imported into India either in entirety or partially. 3. Notification No. 11/97 was amended by Notification No. 51/97 on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or the goods imported at Bangalore. Respondent in the refund claim had annexed thereto technical literature and details explaining the nature of the equipment o show that radio terminals are to be classified either as 'BTS' equipment or 'BTS ancillary equipment' 7. Deputy Commissioner of Customs (Refunds), Bangalore by his order dated 10-4-2000 rejected the Respondent's claim for exemption by holding that radio terminals are only interconnectivity apparatus between BTS and the Main Switching Centre (MSC). Deputy Commissioner took the view that the notification gives exemption only to BTS and not to parts. Radio terminals have an independent function and identity and therefore are not a part of BTS or MSC. It was accordingly held that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pendent equipment having independent identity and function and are not ancillary equipments of BTS and are not covered under the said exemption notification. 11. What is exempted under the notification is Base Transmeter Station (BTS) or BTS ancillary equipment. Ancillary has been assigned the meaning in various dictionaries as P. Ramanatha Aiyar; the Lax Lexicon "aiding auxiliary; subordinate; attendant upon; that which aids or promotes a proceeding regarded as the principal. A work is said to be "ancillary or incidental" to a thing, trade, or business when it is not necessary thereto or a primary part thereof." Stroud's Judicial Dictionary "A work is said to be "ancillary or incidental" to a trade or business when it is not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion unit (IADU), Digital Cage consisting of Main Control Unit (MCU), Fibre optic extender (FOX), Network Interface Unit (NIU), power supplies (NPSM BPSM) and interconnecting feeder cables. The BTS equipment operates in 900 MHz GSM Band. The speech is converted into digital mode by the mobile and sent to the BTS situated at the caller's area at 13 kbps and is further transported to the BSC at 64 kbps through the microwave radio terminal, which is further routed to the MSC at 2 Mbps. The BTS controls the operation of the subscriber and enables handovers between cell (BTS) when the mobile subscriber is travelling. MICROWAVE COMMUNICATION EQUIPMENTS (RADIO TERMINALS ANTENNAS): The Microwave Communication Equipment comprises of radio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o. 11/97, dated 1-3-1997 as amended by Notification No. 51/97, dated 2-6-1997. Radio terminal is not independent equipment having its own independent function. It cannot be termed as general purpose radio equipment as the technical literature clearly indicates that this is specially designed to support Mobile Communication Network in particular GSM. The literature makes it abundantly clear that the radio terminal is not stand alone equipment and cannot function at all, on its own, as contended by the Department. Revenue in its appeal has admitted that the radio terminal functions as a radio wave transmitter between BTS/BSC/MSC. Without this function BTS/BSC/MSC will be rendered useless as there will be no connectivity. 16. Revenue has rel ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... espondent. 17. Tribunal in its order after referring to the literature to which have also made the reference came to the conclusion: "...From the above it is very clear that without the Radio Terminals there cannot be any interconnectivity between BTS and BTS or BSC or MSC. In view of this the Radio Terminals definitely qualify to be ancillary equipments for BTS. On going through the technical literature it is seen that without the Radio Terminal there cannot be any interconnectivity at all and the Cellular Telephony System would not work. Hence, we hold that the imported items namely, Radio Terminals should be considered as BTS ancillary equipment and given the benefit of the above-mentioned notification..." 18. We do not find an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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