In Customs Appeal No. 1347 of 2011 -CESTAT- CESTAT (Bangalore) rules ‘Line Extender’ Imported by M/s. Asianet Satellite Communication Ltd. falls under Chapter Heading 8517
Members P.A. Augustian (Judicial) & R. Bhagya Devi (Technical) [14-07-2023]

Read Order: Asianet Satellite Communication Ltd v. The Commissioner of Customs (Appeals)

Chahat Varma

New Delhi, July 25, 2023: The Bangalore bench of the Customs, Excise, and Service Tax Appellate Tribunal has ruled that the 'Line Extender' imported by M/s. Asianet Satellite Communication Ltd. (appellant), should be classified under Chapter Heading 8517. The Tribunal determined that the ‘Line Extender’ was an integral part of the digital line system and did not possess independent functionality, ruling out its classification under Chapter Heading 8543.

Brief issue involved in the present case was that the appellant had imported various items including splitters, taps, power inserters, directional couplers, and line extenders. These items were classified under Chapter heading 8517 7090, except for the 'Line Extender'. The Commissioner (Appeals) classified the ‘Line Extender’ under Chapter Heading 8543 7069 as a Broadcast Signal Amplifier based on a Wikipedia reference, stating that it amplified signals to extend their transmission reach. However, the appellant argued that the essential functions of the imported goods were related to the transmission and regeneration of voice/images, making them classifiable under Chapter Heading 8517 62 instead of Chapter Heading 8543, as claimed by the Revenue.

The bench of P.A. Augustian (Judicial) and R. Bhagya Devi (Technical) took note of the literature presented by the appellant, which demonstrated that the 'Line Extender' was essentially a Digital Subscriber Line (DSL) repeater.

The bench further observed that an amplifier falling under Chapter Heading 8543 must be an independent functional unit. However, the ‘Line Extender’ was an integral part of the DSL systems and lacked independent functionality. Consequently, the bench ruled out its classification under Chapter Heading 8543 and determined that it appropriately fell under Chapter Heading 8517.