Does Cellular phone include Fixed Wireless Telephone working on cellular technologies? - Board reverses decision.
Cellualar phones were exempted from Customs duties by Notification No. 21/2002-Cus. Board had vide Circular No. 57/2003-Cus dated 27.06.2003 clarified that 'Cellular Phone' in the notification No. 21/2002-Cus covers only hand held mobile phones working on cellular technology. The entry does not cover either Fixed Wireless Terminals or Fixed Wireless Telephone working on cellular technologies. This circular had been suspended by two High Courts. Finally the Supreme Court in the Tata Teleservices case - categorically held that ".....since there is no dispute that the technology used in the Fixed Wireless Telephone LSP 340 and the hand held mobile phone is the same, there is no warrant to limit either the tariff entry or the exemption notification to hand held cellular phones. Neither the range nor the size should make the difference."
The Board has graciously accepted the Supreme Court's judgement and the Circular No. dated 27.06.2003 is withdrawn and status-quo ante is restored.
Board now clarifies that the benefit of notification No. (S.No. 313) dated 01.03.2002 is available to all telephones (including Fixed Wireless Telephones) working on cellular technology.
CIRCULAR NO. , Dated : April 20, 2006