CESTAT Chennai- Clarifying the Scope of Customs Exemption for MIMO-Based Devices

ALO Law Office- IDT Tax I Arbitration I Litigation

Date: 11.06.2025

CESTAT Chennai- Clarifying the Scope of Customs Exemption for MIMO-Based Devices

The Customs, Excise and Service Tax Appellate Tribunal (CESTAT), Chennai has ruled in favor of M/s Inflow Technologies Pvt. Ltd., granting them exemption from Basic Customs Duty (BCD) under Notification No. 24/2005-Cus., despite their imported Wireless Access Points (WAPs) employing MIMO technology. The Tribunal relied heavily on the Delhi High Court’s judgment in Ingram Micro India Pvt. Ltd., asserting that the term “MIMO and LTE Products” must be read conjunctively, not disjunctively.

Case Background

• Appellant: Inflow Technologies Pvt. Ltd.
• Product in Question: Wireless Access Points (WAPs) imported between July 2014 and June 2017.
• Classification: Under CTI 8517 6990 (apparatus for transmission/reception of data).
• Claimed Exemption: Under Sl. No. 13 of Notification No. 24/2005-Cus., which provides for ‘nil’ rate of BCD for eligible telecom goods.
• Dispute: The Commissioner rejected the exemption claim stating that since the WAPs used MIMO technology, they were excluded under Sl. No. 13(iv), which excluded “MIMO and LTE Products.”

This Article has been written by Shri Ravi Shekhar Jha, Advocate Delhi High Court based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.

Source: CESTAT Chennai

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