Page 182 - GSTL_14th May 2020_Vol 36_Part 2

284 GST LAW TIMES [ Vol. 36
(9) Master Earth Station
(10) Micro Earth Station
(11) Radio Network Terminal
(12) Inter-facility Link
(13) Pilot Receiver”
These entries, which are classifiable under HSN Code 8525 60 92, refer to those
equipment which are used to communicate with the Satellite and nowhere Tran-
sponders finds a place in this List. This proves that Transponders are not consid-
ered as part of the “Other Satellite Communication Equipment”.
The Applicant submits that the uplink and/or downlink operations car-
ried out by the customers require base station at ground which may be owned by
them or leased from the Teleport operators. The customers, through the teleport
or through their own ground equipment, uplink their data directly to satellite
and it can be downlinked in the area covered by satellite by using appropriate
ground equipment such as antenna, down converters demodulators, set top box-
es, etc., when a customer intends to start any communication service like, Televi-
sion, Broadcasting, Digital Satellite news gathering, outdoor Broadcasting, Direct
to Home, VSAT (Very Small Aperture Terminal - ATM, Retail, Banking etc.,).
Department of space (DOS) identifies and allots Satellite Bandwidth Capacity (in
MHz) to customer to enable such services. A Transponder lease agree-
ment/MOU between DOS and the Customer with NSIL as Contract Manager is
entered towards this. The Customer starts using the allotted Satellite Bandwidth
Capacity after obtaining other regulatory approvals/clearance. No intervention
of NSIL/ DOS is involved in either uplinking or down linking. One such lease
agreement entered on February 12th, 2020 with M/s. Odisha Television Limited
is enclosed for your perusal. As per the agreement entered into between DOS
with Odisha Television Limited vide Agreement No. DOS/OT/NSIL-GSAT10-
DSNG-C-03-2020 dated February 12, 2020 for the provision of 3 MHz C band ca-
pacity on GSAT 10 satellite, the Customer will utilize this bandwidth (Uplink :
6304.5 - 6307.5 MHz/LH, Downlink : 4079.5 - 4082.5 MHz/LV) to transmit and
receive DSNG carriers. The agreement for providing bandwidth capacity is en-
tered for a fixed period of time and can be renewed based on mutual consent
between DOS and the party. After closure of agreement, this capacity is free for
allotment by DOS to any other party. Further the Applicants submits that, the
transponders leased by the Applicant to its customers form part of communica-
tion satellite and do not form part of any other equipment/aircraft/navigational
device, etc. The Applicant also submits that the transponder is a specific part of
the satellite without which the Communication Satellite is of no use. Such a satel-
lite transponder cannot be used in any other navigation equipment. It is specifi-
cally used only in a satellite. This Satellite Transponder is not of generic use. Any
goods specifically designed for a particular product (Satellite in this case) will be
classified as part of that machine and not a part of generic use. This is the rule of
classification.
The Applicant relies upon the following judgment which explicitly
brings out what is a part and also the classification of specific use of the part : -
Commissioner of Central Excise, Delhi v. Insulation Electrical (P) Ltd. - 2008 (224)
E.L.T. 512 (S.C.) - where in para 19, it is stated... “Chapter 9401 covers all types of
seats and not only the seats of a car and a seat is complete even without the rail assembly
from seat, adjuster/assembly slider seat and rear back lock assembly. They are not essen-
GST LAW TIMES  14th May 2020  182