Netlink Eligible for 10% Duty Reduction on PCBs for Telecom Equipment: CAAR Mumbai

In re Netlink ICT Private Limited (CAAR Mumbai)

In the case of M/s. Netlink ICT Private Limited, the issue at hand was the eligibility of the applicant to claim the benefit of reduced duty of 10% on populated printed circuit boards (PCBs) for the manufacture of telecommunication equipment, specifically GPON ONTs/OLTs, under Sr. No. 22 of Notification No. 57/2017-Cus dated 30.06.2017.

Netlink ICT Private Limited, the applicant, filed an application (CAAR-1) for an advance ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR), seeking clarification on their eligibility for the reduced duty benefit. They argued that their imported populated PCBs were essential components for the manufacture of telecommunication equipment, particularly GPON ONTs/OLTs.

The applicant detailed the intricacies of their telecommunication equipment manufacturing process, emphasizing the critical role of populated PCBs in handling data processing, optical interface, service provisioning, management, and control functions in GPON ONTs/OLTs. They highlighted the specific functions performed by PCBAs (Printed Circuit Board Assemblies) in both OLTs and ONTs, underscoring their significance in the functioning of the equipment.

Furthermore, the applicant argued that their imported PCBs fell under the specific entry of 8517 79 10 in Chapter 85 of the Customs Tariff Act, 1975, which covers populated, loaded, or stuffed printed circuit boards. They contended that the reduced duty rate of 10% under Notification No. 57/2017-Cus dated 30.06.2017 applied to their imported PCBs.

The jurisdictional Commissioner of Customs, Chennai-II, however, disagreed with the applicant’s classification and eligibility for the reduced duty benefit. They argued that the imported goods were rightly classified under a different tariff heading (85176290) and were not eligible for the reduced duty rate.

In response, the applicant provided a detailed rebuttal during a personal hearing, presenting evidence to support their classification and eligibility for the reduced duty benefit. They emphasized that their imported PCBs were integral parts of GPON ONTs/OLTs and should be classified under the specific entry of 8517 79 10.

After considering all submissions and legal provisions, the CAAR ruled in favor of the applicant. They concluded that the imported populated PCBs were indeed eligible for the reduced duty rate of 10% under Sr. No. 22 of Notification No. 57/2017-Cus dated 30.06.2017. The ruling was based on the specific functions and classification of the imported PCBs, as well as the relevant provisions of the Customs Tariff Act and Circulars issued by the CBIC.

The CAAR’s decision aligned with previous rulings and legal precedents, including cases involving similar telecommunications equipment and populated PCBs. They emphasized the importance of proper classification and interpretation of tariff entries, ensuring clarity and consistency in customs duties and benefits.

In summary, the ruling affirmed Netlink ICT Private Limited’s eligibility for the reduced duty benefit on their imported populated PCBs, providing clarity on their classification and tariff treatment for the manufacture of telecommunication equipment.

FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI

M/s. Netlink ICT Private Limited (having IEC No. 1015002943 and hereinafter referred to as ‘the applicant’, in short) filed an application (CAAR-1) for advance ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR in short). The said application was received in the secretariat of the CAAR, Mumbai on 04.10.2023 along with its enclosures in terms of Section 28H (1) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’ also). The applicant is seeking advance ruling on their eligibility to claim the benefit of reduced duty of 10% vide SI. No.22 of Notification No.57/2017 Customs, dated 30.06.2017 in respect of populated printed circuit boards, imported by them, for the manufacture of telecommunication equipment through the port of Chennai.

2. Applicant has stated as follows in their statement of the relevant facts having a bearing on the question(s) on which the advance ruling is required enclosed with the CAAR-1 application:

2.1. The Applicants are engaged in the manufacture of telecommunication equipment and deals with a wide range of telecommunication equipment like GPON OLTS and ONTS, optical fibers and other internet accessories.

2.2 Fiber-to-the-Home (F1TH) is a technology that delivers communication signals from a central point to the individual customer over optical fiber. The two important types of systems that make FTTH broadband connections possible are active optical networks (AON) and passive optical networks (PON).

2.3 AON refers to a network in which the signal is transmitted using a photoelectric conversion device, active optical components, and fiber optics. AON is a type of network that enables point-to-multipoint optical communication for a variety of industrial applications such as optical fiber transmission lines and optical remote terminals.

2.4 PON refers to an optical distribution network (ODN) that doesn’t use any active devices or components for its operations. PON is designed as an access network for optical fiber applications because it doesn’t use any active component that requires a power source to function. There are two major PON standards: Gigabit Passive Optical Network (GPON) and Ethernet Passive Optical Network (EPON).

2.5 EPON is a technology used in telecommunications and networking to provide high­speed broadband connectivity. EPON is a type of passive optical network (PON) that uses Ethernet as the medium for communication between the central office (CO) and the customer premises.

2.6 They submitted that GPON is a point-to-multipoint access network. The main characteristic of GPON is the use of passive splitters in the fiber distribution network, enabling one single feeding fiber from the provider to serve multiple homes and small businesses. GPON relies on fiber optic cables to deliver video, data and voice signals.

2.7 GPON consists of three important components, namely, Optical Line Terminal (OLT). Optical Network Terminal (ONT) and Optical Distribution Terminal (ODN).

2.7.1 An OLT is a device that acts as passive optical network’s endpoint for internet service provider (ISP). The OLT serves as a connection point between a PON and I S P’s main network. An OLT controls the flow of data both upstream and downstream, convert fiber optic service (FIOS) standard signals to the frequency and frame utilized by a PON system and coordinate the numerous analog or digital signals that are integrated into one signal between the ONT conversion devices (a process known as multiplexing).

2.7.2 ONT is a broadband telecommunication terminating device installed at the customer premise. The ONT acts as the interface with the end user’s equipment. Further, the ONT functions as an optical modem that connects to an ISP via a fiber optic cable. On the upstream channel, the ONT delivers user data to the OLT, and on the downstream channel, it receives data.

2.7.3 ODN refers to the infrastructure within a passive optical network (PON) that is responsible for distributing optical signals from the central office (CO) to multiple customer premises. In PON architectures like EPON and GPON, the ODN plays a crucial role in ensuring efficient and reliable data transmission.

2.8 For the purpose of manufacturing of GPON ONTS/OLTs, the Applicants import populated printed circuit boards. It may be noted that a printed circuit board (PCB) is a medium used to connect electronic components to one another in a controlled manner. Further, populated PCB is a circuit board with electronic components. Electrical components may be fixed to conductive pads on the outer layers in the shape designed to accept the component’s terminals, generally by means of soldering, to both electrically connect and mechanically fasten them to it. In general, populated PCBA (Printed Circuit Board Assembly) plays a crucial role in handling data processing, optical interface, service provisioning, management, and control functions in GPON OLTS and ONTs. It enables the efficient operation and delivery of high­speed internee, voice, and other services over the GPON network to both the service provider and end-users.

2.9 The following are the essential functions performed by PCBA i n GPON OLTs and ONTS:

2.9.1 Role of PCBA in the functioning of OLTs:

2.9.1.1 Data Processing: The PCBA consists of a powerful processor, memory, and specialized network processors that handle the processing of data packets. It performs functions such as encapsulation/decapsulation, routing, and forwarding of data between the GPON network and the wider IP network.

2.9.1.2 Optical Line Interface: – The PCBA incorporates optical transceivers and line cards that interface with the optical fiber network. It receives and transmits data in the form of optical signals, converting them to electrical signals for processing and vice versa.

2.9.1.3 Management and Control: The PCBA includes management and control modules responsible for monitoring, configuring, and managing the GPON OLT. It handles tasks such as subscriber authentication, service provisioning, quality of service (QoS) management, and network monitoring.

2.9.1.4 Redundancy and High Availability: In larger GPON deployments, the PCBA may include redundancy features like dual power supplies, redundant processors, and interfaces to ensure high availability and fault tolerance.

2.9.2 Role of PCBA in the functioning of ONTs:

2.9.2.1 Optical Network Interface: The PCBA includes an optical transceiver module that receives and transmits data over the GPON network using optical signals. It converts optical signals into electrical signals that can be processed by the ONT.

2.9.2.2 Data Routing and Switching: The PCBA in a GPON ONT handles the routing and switching of data packets within the subscriber’s premises. It connects various customer devices such as computers, telephones, and televisions, allowing them to communicate over the GPON network.

2.9.2.3 Service Provisioning: -The PCBA in a GPON ONT is responsible for provisioning and managing different services for the subscriber, such as internet access, voice services, and IPTV (Internet Protocol Television).

2.9.2.4 User Interfaces: The PCBA provides user interfaces such as Ethernet ports, Wi-Fi modules, and telephone interfaces, enabling the subscriber to connect their devices and access the services provided by the GPON network.

2.10 It is submitted that populated printed circuit boards merit classification under the specific entry of 8517 79 10 Chapter 85 of the Customs Tariff Act, 1975. The Applicants are of the bona fide belief that the benefit of reduced rate of customs duty of 10% vide Notification No. 57/2017-Cus dated 30.06.2017, is available on the populated printed circuit boards imported by the Applicants for the purpose of manufacture of telecommunication equipment.

3. Applicant’s interpretation of Law

3.1 The applicant has submitted that Chapter 85 of the Customs Tariff Act, 1975 deals with classification of electrical machinery and equipment and parts thereof, sound recorders and reproducers. television image and sound recorders and reproducers, and parts and accessories of such article. It may be noted that tariff heading 8517 provides for classification of telephone sets, including telephones for cellular networks or for other wireless networks: other apparatus for the 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), other than transmission or reception apparatus of heading 8443, 8525, 8527 or 8528.

3.2 They further submitted that on scrutiny of the entries covered under fourth one dash [“­”]under tariff heading 8517 “Parts”, it can be seen that populated, loaded, stuffed printed circuit boards find specific mention under 8517 79 10. CTI-1 8517 of Chapter 85 of the Customs Tariff Act, 1975 has been extracted below for reference:

From the above, it may be noted that populated printed circuit board has been specifically classified under tariff entry 8517 79 10 and is liable for basic customs duty of 20%

3.3 The Applicants submit that Notification No. 57/2017-Cus dated 30.06.2017 prescribes basic custom duty in respect of certain electronic goods. Si. No. 22 of the Notification No. 57/2017-Cus dated 30.06.2017, prescribes reduced rate of 10% of basic customs duty for Printed Circuit Board Assembly (PCBA) of Optical Transport Network (OTN) products.

The relevant portion of the notification is extracted herein below for reference:

From the above, it may be noted that vide Sl. No.22 of Notification No. 57/2017-Cus dated 30.06.2017, reduced customs duty of 10% is available on populated printed circuit boards of Packet Optical Transport Product or Switch (POTP or POTS) products.

3.4 The applicant has submitted that Packet Optical Transport Product (POTP) is a network communication device or system designed to efficiently and seamlessly transmit data across telecommunications networks using a combination of packet-switching and optical transport technologies. It integrates packet-based traffic with traditional optical transport capabilities, allowing for the high-speed and reliable transmission of data over long distances: POTP devices typically combine the advantages of both packet-switching and optical transport by converting incoming data into packets, which are then transported over optical wavelengths for rapid and efficient long-distance transmission.

3.5 Further, Packet Optical Transport Switch (POTS) is a specific component within a Packet Optical Transport Product that focuses on the switching and routing of packet-based traffic. It enables the dynamic management of data packets at the network layer, facilitating efficient and optimized routing across the network. The POTS component operates in conjunction with the optical transport capabilities of the product, which utilize optical wavelengths to transmit data over long distances at high speeds and capacities.

3.6 On analysis of the above-mentioned features of POTP/POTS, it can be understood that GPON 01.,T and ONT fall within the ambit of POTP/POTS. The Applicants further place reliance on Circular No.08/2023 dated 13.03.2023. providing clarification with respect to products and equipment covered under Packet Optical Transport Product or Switch. The relevant portion has been extracted herein below:

Since GPON OLT and ONT fall within the ambit of POTP/POTS products, the Printed Circuit Board Assembly (PCBA) used for the manufacture of GPON OLT and ONT would qualify for reduced customs duty rate of 10% as per SI.No.22 Notification No. 57/2017-Cus dated 30.06.2017.

4. Port of Import and reply from jurisdictional Commissionerate:

4.1 The applicant in their CAAR-1 indicated that they intend to import the subject goods from Commissioner of Customs, Custom House, No. 60, Rajaji Salai, Chennai, Tamil Nadu 600001. The application was forwarded to the jurisdictional Commissioner of Customs, Chennai-I1 (Import) Customs House, 60, Rajaji Salai Chennai — 600 001 for their comments on 12.10.2023, 13.12.2023, 29.12.2023 & 10.01.2024.

4.2 The jurisdictional. Commissioner of Customs, Chennai-11 (Import) sent the detailed comments vide their letter dated 17.03.24 issued vide File No. F. No. CUS/APR/MISC/633/2024-GR 5A.

4.3 Inter-alia it has been informed that the subject goods are rightly classifiable under CTI 85176290 and are not eligible for confessional rate of BCD @10% under Sr. No. 22 of Notification No. 57/2017-Cus dated 30.06.2017 in view of the reasons as stated under Annexure — I to the letter dated 17.03.2024. The brief of the Annexure-I is as below:

4.3.1 Attention is invited to the photographs of the product proposed to be imported by the applicant wherein the subject item is having OF adapter-APC stuffed on the PCBA, and thereby the subject item does not function only as a PCBA, but having an essential component for UPON the subject item is capable of functioning as a UPON device.

4.3.2 Attention is invited to the photographs of the product proposed to be imported by the applicant clearly mention GPON (GPON0006B6CAE and GPONO0C4E77A). It appears that the Populated PCBA proposed to be imported is a UPON Board in itself, capable of functioning as GPON apparatus.

4.3.3 PON apparatus are fiber optic products that are meant to transport optical signals, transmission or reception of voice, images or other date, including apparatus for communication in a wired or wireless network (such as a local or wide area network) Given the intent of Finance Ministry Notification dated 11.07.2014 to levy duty on optical transport equipment, it can he deduced that PON devices including GPO, NPON etc.. are primarily optical transport network equipment. Hence, the subject goods appear to be correctly classifiable under 85176290.

4.4 The above said reply dated 17.03.2024 was forwarded to the applicant for further rebuttal in the matter.

5. Details of Personal Hearing:

5.1 A personal hearing was held on 02.04.2024 at 04:30 PM. Shri. Jose Jacob, Advocate appeared for PH and reiterated their contention submitted with their written submissions. A demonstration was also organised by them through their representatives who appeared in personal hearing in this office physically. The learned advocate submitted that there is specific tariff entry i.e. CTI 85177910 WTI 1851779- covered under parts) CTI 85177990-Others and that the subject goods are not a complete machine but is a part. He also submitted that the department contention of classifying it the same under CTI 85176290 is not correct. However he sought one week time to give further written submission/rebuttal on the department comments which was accepted. Nobody appeared from the department side to attend the PH neither through physical nor vide virtual mode.

5.2 The applicant through their advocate Shri Jose Jacob submitted a point wise rebuttal dated 04.04.2024 on the comments dated 17.03.2024. The Applicants has inter-alia submitted the step wise process involved in assembling of the finished product using the imported product along with a detailed write up of other components involved in the process other than the populated printed circuit board. The same has been detailed in Annexure-2 and Annexure-3 of the submission dated 04.04.2024. Further the applicant has contended that it is very evident that the product imported by the Applicants is not a finished product but a part of the finished product GPON ONT / OLT device. This becomes even more evident when we see heading 8517 79 which reads “Parts”. Consequently. parts of machines covered under 8517 will have to be classy lied under 8517 79 and not elsewhere. Furthermore, the product in question finds specific mention under 8517 79 10 which reads “Populated, loaded or stuffed printed circuit boards”. In view of the same alone the classification proposed by the Ld. Additional Commissioner is liable to rejected. Furthermore, it is settled proposition of law that residual entry should not be resorted to unless the product cannot be classified under any of the other entries. The classification proposed by the Ld. Additional Commissioner is a residual entry using the term “Other”. Further, submissions and clarifications submitted by the Applicant has been taken on record.

6. I have considered all the materials placed before me in respect of the subject goods. I have gone through the submissions and additional submission made by the applicant during the personal hearing. Therefore, I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework. The issue before me is whether the applicant is eligible to claim the benefit of reduced duty of 10% vide SI. No. 22 of Notification No. 57/2017-Cus dated 30.06.2017in respect of Populated Printed Circuit Boards, imported by them, for the manufacture of telecommunication

7. Before deciding on the issue, let me deliberate on the legal framewotic₇pr,ps_eribeci in Customs Tariff Act, 1975, Chapter/ Section notes along with HSN explanatory notes. I find that the applicant has suggested that the subject goods merits classification under CTI 85177990, however the jurisdiction is of the view that the subject goods merit classification under CTI 85176290.

7.2 Relevant portion of CTH 8517 is reproduced below for case of reference:

I find that the product intended to be imported by the Applicants is not a finished product but a part of the finished product GPON ONT / OLT device. From the assembling process illustrated in the pictures provided in Annexure-2 of the reply letter dated 04.04.2024 it can be seen that this process includes putting the accessories to the PCBA (configuring/Connecting and checking all the cables) adding CMOS battery, adding PON modules and testing thereof and adding the software before it is finally packed. The configuration, testing and addition of software apparently play a crucial role in giving character GPON ONT/OLT device. Hence it appears that the department contention that the subject import goods is not parts but is a complete goods does not appears sound and tenable. It is clear from above that under CTI 85176290 the products sought to be covered are to be finished products and not parts. I find that parts of machines covered under 8517 will have to be classified under 8517 79 and not elsewhere. The product in question finds specific mention under 8517 79 10 which reads “Populated, loaded or stuffed printed circuit boards”. The classification proposed by the Applicants is more specific and for this reason, the classification proposed by the Applicants have to be adopted applying Rule 3 (a) of the General Rules for the Interpretation of this Schedule contained in the First Schedule — Import Tariff.

7.3 The submission of the applicant was scrutinized in view of Sr. No 22 of Notification No 57/2017 dated 30.06.2017 as amended. In this regard, it is to mention that the relevant portion of the Notification is as under: –

7.3.1 From the above it is evident that Printed Circuit Board Assembly (PCBA) of following goods, namely:

(c) Combination of One or more of Packet optical Transport Product or Switch (POTP or POTS)

will be eligible for exemption benefit available as per Notification No. 57/2017-Cus dated 30.06.2017.

7.4 I find that the Board vide its Circular No. 08/2023 dated 13.03.2023 has clarified items under said entries specifically those at (b) to (h), amongst (a) to (h), in the Notification No. 57/2017-Cus dated 30.06.2017, for better understanding by all stakeholders of more effective identification of products and equipment covered therein. The relevant para of the said circular is reproduced verbatim:

Attention of the_. field, formations is invited to Notification .Vu. 57/2(117-Customs, dated 30­6-2017 amended by Notification No. 2/2019-Customs, dated 29-1-2019 which, against tariff items 8517 62 90 and 8517 69 90, gives descriptions of certain goods that are telecommunication products or equipment.

2. In this context, the Board was apprised that some of these technology related descriptions, specifically those at (b) to (h), amongst (a) to (h), in the notification, need to be better understood by all stakeholders for a more effective identification of products and equipment covered therein.

3. Accordingly, in order to make stakeholders more aware in the matter, and in consultation with the Department of Telecommunications (DoT) —

(a) the identification of products/equipment covered thereunder, at (b) to (h) of the notification, is illustrated in Annexure -1;

(b) it is decided that, in terms of the Bill of Entry (Electronic Integrated Declaration and Paperless Processing) Regulations, 2018, an identification of products/equipment under 85176290 and 85176990 shall be enabled from the beginning, that is, from the time of filing of import declarations itself, bringing certainty, for which an alpha numeric code/identifier as provided for in Annexure-2 will need to be additionally declared in bill of entry by the importer with effect from 1-4-2023.

Annexure -1

From the above it is aptly clear that CBIC has issued the Circular No 08/2023 dated 13.03.2023 in consultation with the Department of Telecommunication and Annexure-1 to the said circular clearly states that Notification description of ‘Combination of one or more of Packet Optical Transport Product or Switch (POTP or POTS)’ covers following Machines/apparatus:

i. Optical Line Terminal (OLT) for FTTX (GPON/ EPON/ XGSPON/ 10GEPON/ NG-PON2/ 25GPON / 50GPON etc.);

ii. Optical Network Terminal (ONT) for FITX (GPON/ EPON/ XGSPON/ 10GEPONI NG-PON2 /25GPON / 50GPON etc.)

7.5 In the instant case the applicant proposes to import the Populated Printed Circuit Board for the manufacturing of Telecommunication equipment and more specifically for the purpose of manufacturing of GPON ONTs/OLTs which is aptly covered under ‘Combination of one or more of Packet Optical Transport Product or Switch (POTP or POTS)’ as per para above.

7.6 In a US Cross Ruling No NY N024619 dated 24.03.2008 it was observed that :- the process of assembling the PCBAs and telecommunications chassis together is followed by the installation of proprietary software, calibration, configuration, and testing. it is only after these processes that the WDM system becomes functional.; that The applicable subheading for the printed circuit board assemblies (PCBAs) and telecommunication chassis be 8517.70.0000. In the instant case the PCBA appears to be parts of the (WON 01.,T/ONT and PCI.3A is categorically provided entry in the Tariff as 85177910.

8.1 Furthermore, the decision of the Tribunal in the case of Commissioner of Customs, Mumbai (Air Cargo Import) Vs. Reliance .Jio Infocomm Ltd. (supra), deals with classification of ‘cards i.e.. Populated Printed Circuit Boards (PCBs)’ incorporated in photonic service switch. Thus, the imported goods in the present case ‘interface cards^– being functionally similar, the decision of the Co-ordinate Bench of the Tribunal, which has been upheld by the Hon’ble Supreme Court in Civil Appeal No.000586-000598/2023 arising out of Diary No.31965/2022, by holding that they do not think it is appropriate to interfere in the impugned order, is relevant to the present case. The relevant paragraphs of the above order of the Tribunal are extracted below:

“2. Brief facts of the case are that M/s Reliance Jio Infocom Ltd., the respondent herein has imported “Cards” (Populated Printed Circuit Boards) OSLM-5-100G-WL3N for DWDM Equipment-Photonic Service Switch (PSS) 1830 imported by them and have classified the same under Customs Tariff Sub-heading 8517 7010. The Department accessed the bills of entry changing the classification to CTH 8517 62 90; the appellants preferred an appeal before the Commissioner (Appeals); Commissioner (Appeals) vide impugned orders has upheld the contention of the appellants and allowed their appeals.

xx xx xx xx

18. On going through the relevant HSN notes, we find that the apparatus or equipments referred in the notes are complete apparatus and not Populated Printed Circuit Boards of such apparatus, As submitted by the respondent the Network Interface Cards referred to in the notes are not PCB of any transmission or reception apparatus of heading 8517.. Network Interface Cards connect the computers to the Internet and therefore can be considered to have independent function. Going by the product literature and our discussions as above, we find that the impugned cards are incorporated in and or parts of DWDM equipments.

20. In view of the above, we find that the Department could not support their contention. No technical literature was submitted; in spite of the fact that the imports have been taking place over a period of time. Learned Commissioner (Appeals) has been upholding the contention of the appellants, In one instance Revenue has accepted the order of Commissioner (Appeals). We find that the Department has not drawn any samples and did not obtain technical opinion to support their claim that the impugned goods are complete machines or equipment capable of independent function themselves so as to merit classification under CTH 85176270. On the contrary, the respondents could demonstrate by technical literature; samples and the ratio of judgments cited above that the goods imported by them are Populated Circuit Boards (PCBs) used in PSS 1830 and therefore, the impugned goods are parts of PSS and as such merit classification CTH 85177010. We also find that the appellants have submitted US Customs Rulings on the classification of the impugned goods, though they are not binding on us, they would certainly have a persuasive effect more so in the absence of any evidence to the contrary. In view of the discussion as above, and considering the fact that Commissioner (Appeals) has been consistent in rejecting the department’s claim, we are of the considered opinion that there is no merit in the appeals filed by the Department.”

In the above said case the I Hon’ble Supreme Court, upheld the view of the Tribunal and dismissed the appeal filed by the Revenue.

8.2 The above view has been further referred in the final Order No. A/86763/2023 dated 06.06.2023 by I-Hon’ble CESTAT Mumbai in case of M/s Huawei Telecommunication (India) Company Private Limited Vs Commissioner of Customs (Appeals), Mumbai-III wherein Appeal has been allowed in favour of appellant.

8.3 I further find force in the contention of the applicant that residuary entry should not be resorted to unless the product cannot be classified under any of the such entries. In the case of Western India Plywoods Ltd Vs Collector of Customs, Cochin [2005 (188) E.L.T. 365 (S.C.)]Hon’ble Supreme Court has held that:

Application of residuary entry to be made with extreme caution, being attracted only when no other provision expressly or by necessary implication applies to goods in question.

The same view was taken by Hon’ble Supreme Court in the case of CCE Vs Wockhardt Life Sciences Ltd. [2012 (277) E.L.T. 299 (S.C.)] and it was held that:

Residuary entry can be taken refuge of only in absence specific entry para [33]

9. Therefore, in view of the above detailed discussions and on the basis of the decision of the Tribunal which was upheld by the I Hon’ble Supreme Court as discussed in paragraph 8.1 to 8.2, 1 am of the considered view that the subject goods for the manufacturing of Telecommunication equipment and more specifically for the purpose of manufacturing of GPON ONTs/OLTs are covered under Sr. No. 22 of Notification No. 57/2017-Cus dated 30.06.2017 as amended.

10. In view of the above facts and circumstances of the case I find that the applicant is eligible to claim the benefit of reduced duty of 10% vide No. 22 of Notification No. 57/2017 Customs, dated 30.06.2017 in respect of Populated Printed Circuit Boards, for the manufacture of telecommunication equipment and more specifically for the purpose of manufacturing of G PON ONTs/0 LTs

11. I rule accordingly.