Relief to Asianet: CESTAT quashes Order of Classification of ‘Line Extender’ under category of Broadcast Signal Amplifier on ground of Incorrect Classification [Read Order]

The Bangalore bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) quashed the order of classification of line extender under the category of broadcast signal amplifier on the ground of wrong classification. 

Asianet Satellite Communication Ltd, the appellant assessee appealed against the order passed by the Commissioner (Appeals) for classification of line extender under the category of broadcast signal amplifier. 

Hari Radhakrishnan, the counsel for the assessee contended that the Commissioner wrongly classified the line extender and the line extender are amplifiers and its function was to amplify the signals when the signals become weak to extend the reach of the transmission of the signals. 

Further submitted that the transmission and regeneration of voice/images being essential functions of the goods imported and it had to be necessarily classifiable under Chapter Heading 8517 62 instead of Chapter Heading 8543 which was claimed by the revenue. 

K. A. Jathin, the counsel for the revenue relied on the decisions made by the lower authorities and contended that the classification made by the Commissioner (Appeals) was as per the law and liable to be sustained. 

The bench observed that the ‘Line Extender’ cannot function in isolation but as a part of the digital line system. Hence, the classification under Chapter Heading 8543 was wrong and it was rightly classifiable under Chapter Heading 8517 as claimed by the assessee.  The two-member bench comprising P. A Augustian (Judicial) and R.Bagya Devi (Technical) quashed the classification made by the lower authorities while allowing the appeal filed by the assessee. 

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