ALO Law Office- IDT Tax I Arbitration I Litigation
Date: 01.10.2025
CESTAT Delhi- Optical Network Cards Classified as Parts
This Article has been written by Shri Ravi Shekhar Jha, Advocate based in New Delhi. The views expressed are based on his interpretation of the law. He can be reached at his email id intelconsul@gmail.com or on his Mobile +91-9999005379.
Introduction
In a significant ruling, the Customs, Excise & Service Tax Appellate Tribunal (CESTAT), New Delhi, has set aside the order passed by the Principal Commissioner of Customs, bringing relief to M/s Fiberhome India Private Limited. The case revolved around the classification of imported goods under the Customs Tariff Act, 1965, and the denial of exemption benefits. β This decision not only clarifies the classification of certain telecom equipment but also sets a precedent for similar disputes in the future. β
Background of the Case
Fiberhome India, a manufacturer of Optical Transport Network (OTN) equipment, had imported various cards, modules, and routers used as parts of OTN systems. The company classified these goods under Customs Tariff Items (CTI) 8517 70 10 and 8517 70 90, claiming them as parts of OTN equipment. β However, the Principal Commissioner reclassified these goods under CTI 8517 62 90, treating them as independent apparatus/machines, thereby denying exemption benefits and imposing higher customs duties. β The dispute involved 133 Bills of Entry assessed at IGI Airport, Delhi, and ICD Tughlakabad, and raised critical questions about the classification of goods as parts versus independent apparatus.
Source: CESTAT Delhi
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