Page 187 - GSTL_14th May 2020_Vol 36_Part 2

2020 ] IN RE : NEW SPACE INDIA LTD. 289
three major sub-headings namely (a) Transmission apparatus under Heading
8525 50, (b) Transmission apparatus incorporating reception apparatus under
Heading 8525 60 and (c) Television cameras etc., under Heading 8525 80. Further
8525 60 1 series covers two way communication equipment and 8525 60 9 series
covers others which include VSAT terminals, other satellite communication
equipment.
6.13 In this regard our attention is drawn towards the brief outline of
the basic satellite communication set-up. The basic elements of a satellite com-
munication system include the ground segment and the space segment. The
ground segment comprises the transmitting and the receiving Earth stations to-
gether with their associated instruments, antennae, electronic circuits etc. These
earth stations provide access to the space segment by transmitting/receiving in-
formation to/from the satellite. The space segment comprises one or more satel-
lites, which act as repeater stations.
6.14 The tone and tenor of the goods covered under Heading 8525
shows that the transmission apparatus (i.e. Radio broadcast transmitter, TV
broadcast transmitter, wireless microphone etc. under Heading 8525 50), trans-
mission apparatus incorporating reception apparatus (i.e. two way radio com-
munication equipments etc.) are apparatus and equipments based on the land.
Further the entry ‘VSAT Terminals’ under the category of ‘Others’ also relates to
an earth station. VSATs are Very Small Aperture Terminal (VSAT) and are two-
way ground stations that transmit and receive data from satellites. The compet-
ing entry “Other Satellite Communication Equipment’ immediately follows the
VSAT entry. This throws light on the nature of the equipments covered under
‘Other Satellite Communication Equipment’. Such equipments ought to be in the
nature of equipments located on the ground and used to establish communica-
tion with the satellite much as VSATs. This leads one to the conclusion that these
equipments shall not be located on the satellite, but on the ground and used to
establish communication from the ground up with the satellite. The flow of the
classification of the apparatus/equipments, thus, leads to the inference that
goods not specifically covered under 8525 50 and 8525 60 but used in transmis-
sion/communication from a ground station to the satellite find classification un-
der the specific Heading 8525 60 92. In view of the above, it is evident that the
goods/equipment covered under the Heading 8525 60 are primarily meant for
communication with the satellite and form part of ground segment.
6.15 In the instant case the transponder is a key payload of communica-
tion satellite and hence cannot form part of ground segment but is essentially a
part of space segment and more specifically the main part to the communication
satellite without which the communication satellite becomes defunct. Therefore
transponders located on the communication satellite are not covered under the
Heading 8525 60 92.
6.16 We now proceed to examine the Tariff Heading 8803. The tran-
sponders are stated to be parts of Communication Satellites. In this regard we
find that Heading 8802, and more specifically Heading 8802 60 00 covers Space-
craft including Satellites. Therefore Satellites are covered under Tariff Head 8802.
The next Heading in the instant Chapter is 8803 and it covers “Parts of goods of
Headings 8801 and 8802”. Therefore it now remains to be determined whether
the transponders qualify to be considered as parts of Satellite and whether the
same are covered under Heading 8803 or not.
6.17 Chapter 88 falls under Section XVII of the Customs Tariff. Section
GST LAW TIMES  14th May 2020  187