CESTAT Bangalore Affirms Importer’s Classification of Airspan Air Velocity 2700 Under CTH 8517 6260

Aadrikaa Legal Services (ALS) – IDT Tax I Arbitration I Litigation

Date: 01.06.2026

CESTAT Bangalore Affirms Importer’s Classification of Airspan Air Velocity 2700 Under CTH 8517 6260

The Customs, Excise & Service Tax Appellate Tribunal (CESTAT), Bangalore, recently delivered a significant ruling in the case of M/s. Anandit Infotech India Pvt Ltd versus the Principal Commissioner of Customs, Bengaluru. The dispute centered on the correct customs tariff classification for the imported Airspan Air Velocity 2700 equipment, a device used in advanced telecommunications networks.

The Dispute

M/s. Anandit Infotech India Pvt Ltd imported the Airspan Air Velocity 2700 and declared it under Customs Tariff Heading (CTH) 8517 6260, which covers Synchronous Digital Hierarchy (SDH) systems. The customs authorities, however, challenged this classification, arguing that the device is a 5G Radio Unit (RU) and should be classified under CTH 8517 6290 (“others”), thereby denying the importer certain duty exemptions.

The Adjudication Authority initially sided with customs, but the Commissioner (Appeals) overturned this decision, accepting the importer’s classification. The Revenue then appealed to the Tribunal.

Key Arguments

• Customs Authorities: Asserted that the Air Velocity 2700 is a 5G Radio Unit, not SDH equipment, and pointed to technical documentation showing its primary function as wireless access for 5G networks.
• Importer (Anandit Infotech): Emphasized that the device functions as a router, synchronizing and routing 5G signals, and provided catalogues, technical literature, and a WPC license to support their claim. They also highlighted that the equipment was imported for R&D and networking purposes, and referenced a “No Objection” letter from the buyer describing it as a “5G Router Kit.”

Legal Principles Applied

The Tribunal relied on the General Rules for the Interpretation of the Import Tariff, focusing on:

1. Most Specific Description (Rule 3(a)): Goods should be classified under the heading that provides the most specific description.
2. Essential Character (Rule 3(b)): For composite goods, classification is based on the component that gives the item its essential character.
3. Technical Function and Documentation: The Tribunal examined technical literature and the intended use of the equipment to determine its essential character.

Tribunal’s Findings

The Tribunal found that:

• The Air Velocity 2700’s main function is to receive, synchronize, and route 5G signals, making it functionally a router.
• The technical evidence and documentation supported the importer’s classification under CTH 8517 6260.
• The classification declared by the importer was sustainable, and the order of the Commissioner (Appeals) was correct.

Outcome

The Tribunal dismissed the Revenue’s appeal and upheld the order in favor of M/s. Anandit Infotech India Pvt Ltd. This decision confirms that the Airspan Air Velocity 2700 is to be classified under CTH 8517 6260, entitling the importer to the associated duty benefits.

Significance

This ruling underscores the importance of technical documentation and the actual function of imported goods in customs classification disputes. It also highlights the Tribunal’s adherence to established tariff interpretation rules, ensuring that goods are classified based on their essential character and most specific description.

This case serves as a reference for importers and customs authorities dealing with advanced telecommunications equipment and similar classification issues.

Source: CESTAT Bangalore

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