2022 (6) TMI 1406 - AAR - Customs

Classification of goods proposed to be imported - data projectors Optoma X309ST, Optoma X319ST, Optoma W319ST, Optoma ZW350, Optoma ZX300 - classifiable under CTH 8528 69 00 or not - exemption to All goods of a kind solely or principally used in an automatic data processing system of heading 8471 - applicability of Sr. No. 17 of Notification No. 24/2005-Customs, dated 1-3-2005 - HELD THAT - These are marketed as data projectors only. From the product catalogues and information available on the websites, it is clear that data projectors are principally meant for use with an automatic data processing system. They are designed to project in places like conference rooms, business meetings, financial institutions, tradeshows, exhibition venues etc. with connectors matching that of a laptop/computer. They possess both indoor and outdoor projection capability. The projectors proposed to be imported by the appellant have got additional features such as an S-Video port, HDM1 port etc. along with the capability to adjust the aspect ratio in 3 models. The additional ports give additional utility in the form of an audio-video display and the ability to adjust the aspect ratio to 16 9/16 10 is for adaptability purposes. The differentiating features of data projectors compared to that of video projectors are discussed in table 1, which substantiates that the principal use of impugned goods, based on functions and features, is with automatic data processing machines. The presence of additional features cannot disentitle the impugned goods from classification under sub-heading 8528 62 00. Reliance is placed upon COMMISSIONER OF CUSTOMS (I), ACC, MUMBAI VERSUS VARDHAMAN TECHNOLOGY P LTD 2013 (8) TMI 271 - CESTAT MUMBAI , where it was held that the projectors merely having additional function cannot be denied classification under CTH 8528 61 00 (erstwhile tariff heading for projectors capable of directly connecting to and designed for use with an automatic data processing system of Heading 8471). Therefore, the goods under consideration are classifiable under sub-heading 8528 62 00. Sr. No. 17 of Notification No. 24/2005-Customs, dated 1-3-2005, as amended, exempts all goods of a kind solely or principally used in an automatic data processing system of 8471 and falling under Heading 8528 62. As the impugned goods are held as classifiable under sub-heading 8528 62 00 and are principally used in/with automatic data processing system they are entitled to the exemption. The projectors Optoma X309ST, Optoma X319ST, Optoma W319ST, Optoma ZW350 and Optoma ZX300 are classifiable under sub-heading 8528 62 00 of the First Schedule to the Customs Tariff Act, 1975 and would be eligible to avail benefit of Sr. No. 17 of Notification No. 24/2005-Customs, dated 1-3-2005, as amended.

Summary

Issues Involved:
1. Classification of data projectors Optoma X309ST, Optoma X319ST, Optoma W319ST, Optoma ZW350, and Optoma ZX300.
2. Applicability of Sr. No. 17 of Notification No. 24/2005-Customs, dated 1-3-2005, as amended.

Detailed Analysis:

1. Classification of Data Projectors:

The applicant, M/s. Audio Distribution House Pvt. Ltd., sought an advance ruling on the classification of specific models of Optoma data projectors. They argued that these projectors are principally meant for use with automatic data processing systems and should be classified under CTH 8528 62 00, which covers projectors capable of connecting directly to and designed for use with such systems. These projectors support various computer display standards and have features like HDMI, VGA, composite, audio-in/out, USB-A, and RS232 connections. The applicant compared their devices with home theatre projectors, which generally support higher resolutions and contrast ratios and are classified under CTH 8528 69 00. The applicant emphasized that their projectors are not home theatre projectors and provided several case laws to support their claim.

The ruling authority considered the materials and submissions, noting the absence of comments from the jurisdictional Commissioner. The authority highlighted the differences between business/data projectors and video/home theatre projectors, noting that business projectors are generally brighter, have lower contrast ratios, and are designed to match computer or laptop screens. The authority referred to the General Interpretative Rules (GI Rules) and relevant Customs Tariff Headings (CTHs) to determine the classification. They noted that projectors designed to work with automatic data processing machines should be classified under Heading 8528. The authority also considered the product data sheets and the manufacturer's website descriptions, which indicated that the projectors are marketed as data projectors for business and educational purposes.

The authority concluded that the projectors in question are designed for use with automatic data processing machines and possess features that differentiate them from video projectors. They ruled that the presence of additional features like HDMI and S-Video ports does not disqualify the projectors from being classified under CTH 8528 62 00. The ruling relied on previous case laws, including Commissioner of Customs v. Vardhman Technology Pvt. Ltd., which held that projectors with additional functions could still be classified under the relevant heading for data processing systems. Therefore, the authority ruled that the projectors are classifiable under sub-heading 8528 62 00.

2. Applicability of Sr. No. 17 of Notification No. 24/2005-Customs:

The applicant claimed eligibility for a nil rate of duty on the projectors under Sr. No. 17 of Notification No. 24/2005-Customs, which exempts goods solely or principally used in an automatic data processing system of Heading 8471 and falling under Heading 8528 62. The ruling authority confirmed that since the projectors are classifiable under sub-heading 8528 62 00 and are principally used with automatic data processing systems, they are entitled to the exemption provided by the notification.

Conclusion:

The ruling authority concluded that the projectors Optoma X309ST, Optoma X319ST, Optoma W319ST, Optoma ZW350, and Optoma ZX300 are classifiable under sub-heading 8528 62 00 of the First Schedule to the Customs Tariff Act, 1975. Consequently, they are eligible to avail the benefit of Sr. No. 17 of Notification No. 24/2005-Customs, dated 1-3-2005, as amended.