5G Radio Unit Is Classified Under CTH 8517 6260: CESTAT

The Bangalore Bench of the Customs, Excise and Service Tax Appellate Tribunal (CESTAT) has dismissed the department’s appeal and upheld the classification adopted by the importer for Airspan Air Velocity 2700, a 5G networking device, under Customs Tariff Heading (CTH) 8517 6260. The bench of Justice P.A. Augustian (Member Judicial) and Pullela Nageswara Rao (Member Technical) noted that even the adjudicating authority had acknowledged that the equipment was a 5G LTE device designed to provide access to LTE networks in indoor spaces and that it belonged to the category of machines used for the reception, conversion, transmission or regeneration of voice, images and other data. The appeal was filed by the Principal Commissioner of Customs, Bengaluru, challenging the Order-in-Appeal dated 25 May 2023, through which the Commissioner (Appeals) had set aside the adjudicating authority’s decision and restored the classification declared by the importer, M/s Anandit Infotech India Pvt. Ltd. The respondent had imported an “Airspan Air Velocity” device and filed a Bill of Entry declaring the goods under CTH 8517 6260. The self-assessment was initially facilitated through the Risk Management System (RMS). However, during scrutiny, Customs authorities questioned the classification adopted by the importer. The adjudicating authority subsequently rejected the importer’s classification and reclassified the goods under CTH 8517 6290. As a consequence, the benefit of Serial No. 20 of Notification No. 57/2017-Customs dated 30 June 2017 was denied. Aggrieved by this decision, the importer approached the Commissioner (Appeals), who ruled in its favour. The Revenue then carried the matter before the Tribunal. Before the Tribunal, the Revenue contended that the imported Air Velocity 2700 is essentially a Radio Unit (RU) and a Long-Term Evolution (LTE) device used in 5G communication networks. According to the department, the tariff entry 8517 6260 specifically covers Synchronous Digital Hierarchy (SDH) systems and therefore cannot encompass a modern 5G radio unit. The department relied upon technical information indicating that the Air Velocity 2700 is an indoor 5G Sub-6 GHz 4T4R radio unit manufactured for use in 5G Radio Access Networks (RAN), particularly private networks and CBRS applications. It argued that SDH equipment is fundamentally different, being fibre-optic transmission equipment used in backbone telecommunications networks for high-speed data transport and multiplexing. Therefore, the imported product could not be treated as SDH equipment and should instead be classified under the residual category of CTH 8517 6290. The Revenue further referred to the tariff structure under Heading 8517, which specifically lists SDH systems under sub-heading 8517 6260 and “others” under 8517 6290, contending that the imported equipment appropriately fell within the latter category. The importer argued that the Airspan Air Velocity 2700 was imported for research and development purposes and constituted telecommunications networking equipment. It submitted that all relevant technical literature, catalogues and the Wireless Planning and Coordination (WPC) licence had been uploaded at the time of import. According to the importer, the equipment operated in the frequency range of 3300–3700 MHz and was intended to function within a 5G communication network. The importer emphasized that the device synchronizes signals and forms an integral part of a networking architecture. The importer also pointed out that the Air Velocity 2700 is a radio unit used within a 5G Radio Access Network and operates on open interfaces defined by the O-RAN Alliance. The device handles user-plane data, control-plane data, synchronization signals and management-plane data. Significantly, the importer argued that the principal function of the equipment is that of a router. It receives signals from communication towers, synchronizes them and routes them within a designated area, thereby improving the efficiency of 5G network operations. The respondent further relied upon a “No Objection” letter issued before importation, in which the goods had been described as a “5G Router Kit.” It was argued that under the General Rules for Interpretation of the Customs Tariff, classification must be based on the most specific description or the essential character of the goods. Since the equipment essentially performed routing functions and connected packet-switched networks, it should be classified according to its core operational characteristics. After examining the technical characteristics and functions of the imported equipment, the Tribunal observed that the Air Velocity 2700 primarily functions as a router. It noted that the device receives signals from communication towers, synchronizes those signals and routes them through network lines within an enclosed area to enhance the efficiency of a 5G network. Based on the functional characteristics of the imported product, the Tribunal concluded that the classification declared by the importer under CTH 8517 6260 was sustainable. Consequently, it found no reason to interfere with the order passed by the Commissioner (Appeals). Upholding the order of the Commissioner (Appeals), the CESTAT dismissed the Revenue’s appeal and confirmed the classification adopted by the importer. The ruling effectively restores the benefit of the relevant customs exemption notification that had been denied by the adjudicating authority following reclassification of the goods. Case Details Case Title: Pr. Commissioner of Customs, Bengaluru Versus M/s. Anandit Infotech India Pvt Ltd Citation: JURISHOUR-1474-HC-2026(BANG) Case No.: Customs Appeal No. 20720 of 2023 Date: 29.05.2026 Counsel For Appellant: Sreekanth, Authorized Representative (AR) Counsel For Respondent: Ramnesh Ananthan, Advocate Click Here To Read Order Read More: Landowners Can’t Reopen Compensation Issue Already Settled in Earlier Verdict: Supreme Court

5G Radio Unit Is Classified Under CTH 8517 6260: CESTAT

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