TMI Blog2023 (11) TMI 68X X X X Extracts X X X X X X X X Extracts X X X X ..... through the same router, mesh Wi-Fi systems rely on multiple Wi-Fi nodes. One node is the designated primary router and is directly wired into the gateway connection, while the other nodes act as satellites. Collectively, the nodes function as a single network. The device gets connected to the node that is closest to it. As per the applicant, the subject goods are classifiable under Chapter Heading 8517 of Customs Tariff Act, 1975 and ought to be specifically classified under sub-heading 8517 62 90, as they are routing apparatus and are supported by the HSN Explanatory notes under Heading 85.17. Further they attract eligibility benefit of exemption under Sr. No. 13N of Notification No. 24/2005-Customs, dated 1-3-2005, as amended. In order to merit classification under 8517, it is essential that the subject goods under consideration meet the criteria as laid down in the relevant headings, sub-heading and notes cited above. From the relevant headings and HSN notes reiterated above, it is apparent that (a) Switching and routing apparatus are specifically covered under sub-heading 8517 62, (b) Routers are covered as other communication apparatus in the HSN notes under sub-heading 85 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... QUANTUM S2K iv. WAVLINK WL-WN529E4 4G LTE N300 Wireless Router WL-WN529E4 2. The applicant is a registered private limited company, engaged in the distribution of Information Technology and Telecommunication products. They intend to import aforementioned models of Routers from China and sell it further to their distributors/consumers. The specifications and characteristics of the Models proposed to be imported are as follows : Attribute HALO Base Pro X2 Quantum D2G Quantum S2K WL-WN 529E4 Technique Wi-Fi Speed AC1200 AC 1200 N300 N300 Band Dual Band Dual Band Single Band Single Band 2.4 GHz 300 Mbps 300 Mbps 300 Mbps 300 Mbps 5 GHz 867 Mbps 867 Mbps - - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ather than connecting all the devices through the same router, mesh Wi-Fi systems rely on multiple Wi-Fi nodes. One node is the designated primary router and is directly wired into the gateway connection, while the other nodes act as satellites. Collectively, the nodes function as a single network. The device gets connected to the node that is closest to it. It is stated that the subject goods are for use as Customer Premises Equipment and not for use by Enterprises, large Organisations etc. As per the applicant, the subject goods, which are used to deliver Wi-Fi network access to all parts of the house by connecting two or more packet-switched networks or sub-networks, are classifiable under Chapter Heading 8517 of Customs Tariff Act, 1975 and ought to be specifically classified under sub-heading 8517 62 90, and attract eligibility benefit of exemption under Sr. No. 13N of Notification No. 24/2005-Customs, dated 1-3-2005, as amended. 2.2 The following relevant portion of Chapter Heading 8517 has been reiterated by the applicant : Heading/ sub-heading/ tariff item Description of the goods 85 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... afe guide. I agree with this view and find that there are numerous Supreme Court judgments in which similar observations are placed on the record by the Hon ble Court. Accordingly, relevant portion of the HSN Explanatory Notes to Heading 85.17 has been extracted for reference : This heading covers apparatus for the transmission or reception of speech or other sounds, images or other data between two points by variation of an electric current or optical wave flowing in a wired network or by electromagnetic waves in a wireless network. The signal may be analogue or digital. The networks, which may be interconnected, include telephony, telegraphy, radio-telephony, radio-telegraphy, local and wide area networks. xx xx xx (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 within, inter alia, carrier-current line systems, digital-line systems and combinations thereof. They may be configured, for example, as public switched telephon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... k as a whole. A router is a programmable device that works with other routers, via a routing protocol, to establish the best path on which to forward a packet with a given address The Que s Computer Internet Dictionary In a packet-switching network such as the Internet, one of two basic devices (the other is a host). A router is an electronic device that examines each packet of data it receives, and then decides which way to send it onward towards its destination 2.5 The applicant has been issued 2 Show Cause Notices dated 29-12-2020 and 28-10-2021, proposing to inter alia demand duty with respect to import of Routers. The demand is pertaining to the period prior to 1-1-2020. The proposals raised in the SCN with respect to Router are as follows : (i) the classification adopted by the Applicant under Tariff Item 8517 69 30 is incorrect; and (ii) the goods are rightly classifiable under Tariff Item 8517 62 90 and benefit of Notification No. 24/2005-Cus. or Notification No. 57/2017-Cus. is not available to the goods concerned. The Show Cause Notices are pending for adjudication and have been kept in abeyance on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... comments from the jurisdictional authority on the subject goods, I proceed to pronounce ruling on the issue, on the basis of information available on record. The subject goods for which advance ruling has been sought, its characteristics, functions, utility etc. has been broadly mentioned in the aforesaid paras. Applicant has submitted definitions of Routers as seen in the Dictionary of Science and Technology, Webster s New World Dictionary and The Que s Computer Internet Dictionary. Common denominator in all these subject specific dictionaries is that a router is an electronic device that examines each packet of data it receives, and then decides which way to send it onward towards its destination and forwards it . The issue involved for advance ruling is, if the subject goods namely Routers , which are networking device that forward data packets between computer networks are classifiable under Chapter sub-heading 8517 62 90 of Customs Tariff Act, 1975 or not, and whether they attract duty exemption benefit under Sr. No. 13N of Notification No. 24/2005-Customs, dated 1-3-2005, as amended or not. 5.1 As submitted by the applicant they have been issued Show Cause Notices d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the applicant s case before any officer of Customs, Appellate Tribunal or any Court of Law and the same has been declared by the applicant in the CAAR-1 form. Since the new legal position w.r.t. both classification and notification benefit has come into existence w.e.f. 1-1-2020 and the Show Cause Notices pertain to the legal framework prevailing to period prior to 31-12-2019, I allow admission of the applications for advance ruling under Section 28-I(2)(a) of the Customs Act, 1962. 5.3 The impugned goods are devices that connect two or more packet-switched networks or sub-networks and deliver Wi-Fi network access to all parts of the house. They serve two primary functions: managing traffic between these networks by forwarding data packets to their intended IP addresses, and allowing multiple devices to use the same internet connection. The Wavlink models Quantum D2G, Quantum S2K and WL-WN529E4 are wireless routers, which use an Ethernet cable to connect to a modem. They distribute data by converting packets from binary code into radio signals, and then wirelessly broadcast them using the antennae. However, the Wavlink model HALO Base Pro X2 is a mesh Wi-Fi router. A mesh Wi-Fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... second one-dash sub-heading covers other apparatus for 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) . Elaborating on the other communication apparatus, the explanatory notes state that 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 within, inter alia, carrier-current line systems, digital-line systems and combinations thereof. They may be configured, for example, as the public switched telephone networks, Local Area Networks (LAN), Metropolitan Area Networks (MAN) and Wide Area Networks (WAN), whether proprietary or open architecture. The group pertaining to Other Communication apparatus inter alia 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, rec ..... X X X X Extracts X X X X X X X X Extracts X X X X
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