No Customs Duty on Hybrid/Pure Matrix Cards for PTN Equipment which are Parts of Goods: CESTAT Rules in

The Customs, Excise, and Service Tax Appellate Tribunal (CESTAT) ruled in favor of Vihaan Networks Limited, declaring that Hybrid Pure Matrix (HPM) cards used in PTN (Packet Transport Network) equipment are parts of goods and not liable for customs duty. The dispute arose when customs authorities imposed duty on HPM cards, classifying them as standalone goods. Vihaan Networks contended that these cards are integral parts of the PTN equipment, thus exempt from customs duty. CESTAT examined the technical specifications and concluded that HPM cards are essential components of PTN equipment, not independent goods. The tribunal emphasized that classifying these parts as separate goods would contradict the principles of the Customs Tariff Act. This ruling underscores the importance of correctly classifying goods and parts in customs duty assessments, potentially impacting future cases with similar disputes