COMMISSIONER OF CUSTOMS, NEW DELHI versus C-NET COMMUNICATION (L) PVT. LTD.

Citation: [2007] 10 S.C.R. 330 · Decided: 26-09-2007 · Supreme Court of India · Bench: ASHOK BHAN · Disposal: Dismissed

Judgment (excerpt)

A 
COMMISSIONER OF CUSTOMS, NEW DELHI 
,,,_ 
v. 
C-NET COMMUNICATION (l) PVT. LTD. 
SEPTEMBER 26, 2007 
B 
[ASHOK BHAN AND V.S. SIRPURKAR, JJ.] 
Customs Tariff Act,.1975: 
'"( 
I 
c 
Entry 8528, 8529 and 8543-Decoder used by cable operator for 
distributing satellite signals collected by Dish Antenna-Classification 
of-Held: Decoder is essential for viewing programmes wired by cable 
TV or pay channels-Without decoder, Television works-It is only 
required to enjoy Television in more meaningful manner-Hence, 
D classifiable under Entry 85 28 as reception apparatus for television and 
not under Entry 8529 as part of Television nor under residuary Entry 
8543. 
j.. 
Words and Phrases: 'apparatus '-Meaning of-Discussed. 
E 
The question which arose for consideration in the present appeal 
is regarding the classification of "Signal Decoder" which is used by a 
Cable Operator for distributing Satellite signals collected by Dish 
Antenna. The assessee claimed that Decoder will be covered under 
Entry 8543 of Custo.ms Tariff Act, 1975. The claim of the Assesseewas 
F negatived by the Assessing Officer as also by the Commissioner 
(Appea!s) who held that the proper Entry would be 8528. The Tribunal, 
however, held the relevant applicable Entry to be 8529. 
Setting aside the order of Tribunal and restoring that of the 
G Commissioner (appeals), the Court 
HELD: 1.1. The decoder is an equipment which is required to be 
~. 
connected to the power supply by way of a cord. It is required to be 
connected with the hP.lp of cords to the satellite receiver. All this is 
con11ected to the Television set. The functioning of the decoder, indicates 
H 
330 
COMMR. OF CUSTOMS, NEW DELHI v. C-NET 
331 
COMMUNICATION (I) PVT. LTD. 
that it is essential for receiving the decoded signals and the subscriber A 
can view the programmes either of the pay channels or meant for the 
cable subscribers with the aid of the decoder. In case the decoder is not 
connected to the Television and to the satellite receiver, then it will not 
be possible for the subscriber to view any programme which is aired by 
the Cable TV or which is meant as a pay channel. For making full use B 
of Television, the signals which are received by the dish-antenna are 
passed through the decoder which does the function of decoding the 
encoded signals so that the viewer can watch them. Under such 
circumstances, it becomes "reception apparatus for television". The 
television may work without the decoder but in order to enjoy the C 
television in a more meaningful manner, as also for its complete 
utili7.ation the decoder is required. It may not be fitting into the description 
of "television receiver" but it certainly is an apparatus which works for 
receiving the signals for television. [Para 15) (343-C-G] 
1.2. Entry 8528 of Customs Tariff Act, 1975 was amended with D 
effect from 1.1.96. The major difference brought out by the amendment 
was, whereas previously 8528 was restricted to "Television Receivers", 
after amendment, the said words have been omitted and have been 
replaced by the words "Reception apparatus for TeJevision". When 
unamended and the amended Entries are compared, it is clear that the · E 
amended Entry has widened the scope of the earlier Entry and what 
was earlier "television receiver" has now become "reception apparatus 
for television". If this is so, the amended Entry under 8528 would aptly 
apply to the decoder which is one of the "apparatus for receiving the 
signals for television". The true test is not as to whether the television F 
could still work without the decoder, but the true test is as to the function 
that the decoder achieves in the user of the television. At number of 
times the signals which are received from the satellite are weak and, 
therefore, would not reach the television intelligibly for the viewer, the 
decoder strengthens these signals. Thus decoder can be aptly described G 
as a "reception apparatus for television". 
[Paras 6 and 15) [335-C, F; 343-G; 344-A-D] 
Manisha Pharma Plas Co. Pvt. Ltd v. Union of India, (1999) 112 
EL T 12 (Del), referred to. 
H 
332 
SUPREME COURT REPORTS 
[2007] I 0 S.C.R. 
A 
2.1. As per Stroud's Judicial Dictionary the term "apparatus" 
B 
includes the distribution board of an electrical installation. It must be 
· ..,.... 
considered when current is passing through and not when it is in its 
inanimate state. (Para 16) (344-E] 
Waddell's Curator Bonis v. Alexander Lindsay Ltd, (1960) SL 

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