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2022 (12) TMI 1468 - AAR - CustomsClassification of goods proposed to be imported - Data Projector Model (i) Optoma SA520. (ii) Optoma X400LVe (iii) Optoma W400LVe and (iv) Optoma VV319ST - eligibility of exemption from duties vide Sl.No.17 of exemption Notification No. 24/2005 dated 1-3-2005 as amended by Notification No. 67/2016 dated 31-12-2016 - HELD THAT - It is evident that the projectors in question are designed for use with an automatic data processing machine. It also appears that the subject goods has got additional ports which make it capable of being a video projector classifiable under 8528 69 00. In this regard it may be mentioned that rule 3 of General Rules for Interpretation of Import Tariff states that the heading which provides the most specific description shall be preferred to headings providing a more general description - Though these projectors appear to have additional features to act as video projector however presence of such additional features cannot dis-entitle the subject goods from classification under Sub-heading 8528 62 00. Applicability of exemption notification - HELD THAT - It is noted that vide SI. No. 17 of Notification No. 24/2005 as amended all goods of a kind solely or principally used in an automatic data processing system of heading 8471 falling under 852862 are given exemption. The projectors in question are machines working in conjunction with an automatic data processing machine and performing a specific function other than data processing thus the same merit classification in the headings appropriate to their respective function i.e 85286200. Moreover subject goods are eligible for exemption from duties vides SI. No. 17 of Notification No. 24/2005-Cus. dated 1-3-2005 as amended.
Issues Involved:
1. Classification of the proposed item of import, Data Projectors. 2. Eligibility of exemption from duties under Sl.No.17 of exemption Notification No. 24/2005 dated 1-3-2005, as amended by Notification No. 67/2016 dated 31-12-2016. Issue-wise Detailed Analysis: 1. Classification of Data Projectors: The applicant, M/s Supertron Electronics Pvt. Ltd., sought an advance ruling on the classification of Data Projectors (models Optoma SA520, Optoma X400LVe, Optoma W400LVe, and Optoma W319ST) under Sub-heading 8528 6200 of the Customs Tariff. The applicant argued that these projectors are designed for use with an automatic data processing system and possess features such as HDMI and S-Video ports, which support their classification under the specified sub-heading. The applicant referenced various resolutions and contrast ratios to differentiate these data projectors from home theatre or video projectors, which typically have higher resolutions and contrast ratios. The applicant cited precedents from the Hon'ble Tribunal and Supreme Court, affirming that projectors primarily used for data projection by connecting to a computer should be classified under CTH 8528 6100 (now 8528 6200). 2. Eligibility for Duty Exemption: The applicant also sought a ruling on the eligibility for exemption from customs duty under Sl.No.17 of Notification No. 24/2005-Cus., as amended. The applicant provided technical specifications and previous rulings, including those from CAAR Mumbai, which classified similar projectors under Sub-heading 8528 6200 and granted duty exemptions. The applicant argued that their projectors meet the criteria for classification under 8528 6200 and should thus be eligible for the exemption. Findings and Rulings: The Customs Authority for Advance Rulings (CAAR) examined the classification of the proposed imports using the Harmonized Commodity Description and Coding System. It was noted that projectors capable of directly connecting to and designed for use with an automatic data processing system are classified under Sub-heading 8528 6200. The technical features of the subject goods, such as computer compatibility and input/output connections, indicated that they are designed for use with data processing systems, thus not meriting classification under Sub-heading 8528 6900. The CAAR referenced Chapter Note 6(C) and 6(E) of Chapter 84 of the Customs Tariff, which outline the conditions for a unit to be part of an automatic data processing system and the classification of machines performing specific functions other than data processing. The projectors in question were found to meet these conditions, supporting their classification under Sub-heading 8528 6200. The CAAR also considered previous rulings by CAAR Mumbai, which classified similar projectors under 8528 6200 and granted duty exemptions. The Authority concluded that the projectors in question are designed for use with an automatic data processing machine and, despite having additional features for video projection, should be classified under Sub-heading 8528 6200. Consequently, the projectors are eligible for exemption from duties under Sl.No.17 of Notification No. 24/2005-Cus., as amended. Conclusion: The CAAR ruled that the data projectors (Optoma SA520, Optoma X400LVe, Optoma W400LVe, and Optoma W319ST) are classifiable under Sub-heading 8528 6200 and are eligible for exemption from duties under Sl.No.17 of Notification No. 24/2005-Cus., as amended. The ruling was based on the technical specifications, previous judicial decisions, and the Harmonized Commodity Description and Coding System guidelines.
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