2024-VIL-1233-CESTAT-MUM-CU
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CUSTOMS CESTAT Cases

Customs - Classification of CISCO “Catalyst 3850 series Ethernet Switches” - Appellant imported various models of Cisco "Catalyst 3850 series Ethernet Switches" classified under Customs Tariff Item 8517 6290 and claiming concessional Basic Customs Duty (BCD) of 10% under Notification No. 57/2017-Customs, treating the imported goods as "Non-carrier Ethernet Switch" - Department re-assessed the goods and denied the concessional BCD, treating them as "Carrier Ethernet Switch" which was excluded from the exemption. The appellant challenged the re-assessment orders before the Commissioner of Customs (Appeals), who upheld the Department's decision. Aggrieved, the appellant filed appeals before the Tribunal - Whether the imported "Catalyst 3850 series Ethernet Switches" are eligible for the concessional BCD of 10% under Notification No. 57/2017-Customs, as claimed by the appellant, or they are to be treated as "Carrier Ethernet Switch" and denied the exemption, as held by the lower authorities - HELD - the specified items which are outside the scope of ITA bound items, under the international obligations agreed to by India as a Member country or signatory to ITA agreement, were continue to attract the BCD of applicable rate as it existed during the relevant time - From the analysis of the tariff schedule and exemption notifications, it becomes clear that the scope of goods covered under the exemption Notification No.57/2017-Customs dated 30.06.2017 which was issued as successor to Notification No.24/2005-Customs, as amended, include ‘Carrier Ethernet Switch’ which are not covered by the ITA agreement - after a detailed analysis of the relevant tariff entries, notifications, and the technical specifications of the imported goods, it is concluded that the "Catalyst 3850 series Ethernet Switches" are "Enterprise Ethernet Switches" and not "Carrier Ethernet Switches" – Department also failed to conduct the technical inspection of the goods as directed in the interim order, and the opinion obtained from the Telecommunication Engineering Centre (TEC) did not fulfill the requirements of the interim order – Further, the certifications provided by the appellant's customers demonstrates that the imported switches were used for enterprise/on-campus use and not for carrier-grade telecommunication services - the imported goods i.e. various models of CISCO “Catalyst 3850 series Ethernet Switches” are classifiable under CTI 8517 6290 and eligible for concessional BCD @10% in terms of Sl. No.13 of the notification No. 11/2014-Customs dated 11.07.2014 and Sl. No. 20 Notification No.57/2017-Customs dated 30.06.2017, as amended - the impugned orders are set aside and the appeals are allowed
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