In re Nokia Solutions and Networks India Private Ltd. (CAAR Delhi)
SFP Transceiver used in optical communication systems to receive and transmit data over fiber optic cables. An ‘Optical Transceiver’ has electronic components to encodes/decode data into light pulses and then send them to the other end as electrical signals. They typically have an electrical interface on the side that connects to the inside of the system and an optical interface on the side that connects to the outside world through a fiber optic cable. Thus, based on the functioning of SFP Optical Transceivers, they are required to convert the electrical signals to optical signals and vice versa for interconnect-ing two networking equipment functioning with electrical signals or optical signals, as the case may be. Therefore, it is evident that the Optical Transceivers, being capable of converting electrical signal to optical signal and vice versa are equipped to handle and be a part of Opti-cal Transport Network, and therefore would be termed as Optical Transport Equipment / Optical Transport Network products. Hence, the subject item, SFP Transceiver is not eli-gible for the benefit of the Notification no. 57/2017-cus Sl.no. 20. In light of the above, the item SFP Transceiver is appropriately classifiable under the Customs Tariff Item 8517 6290 with rate of BCD A20%.
