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2021 (10) TMI 1422 - AAAR - CustomsClassification of imported goods - data projector (Optoma X400LVe) - to be classified under CTH 85286200 or under CTH 85286900? - applicability of Sr' No' 17 of Notification No. 24/2005-customs. dated 01.03.2005, as amended - HELD THAT - A projector is an optical device that projects an image/video onto a surface, commonly a projection screen. The idea of a projector is to convert a small image into a much larger one so that a greater number of people can see it. A projector accepts a video/image as an input, processes it with the assistance of its inbuilt optical projection system consisting of a lens and optical source and projects the enhanced output on the projection screen' Therefore, the compatibility of a projector with input devices, such as a computer, a DVD player, etc' feeding images/videos to it and its ability to project these inputs accurately on the screen forms the most important attribute for the classification of a projector. CTH 85286900 is a residual entry' CTH 8471 covers automatic data processing machines and units thereof; magnetic or optical readers' machines for transcribing data onto data media in coded form and machines for processing such data, not elsewhere specified or included. Chapter Note 5 (E) to Chapter 84 states that machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions' Therefore, projectors working in conjunction with devices under 8471 will be classified under heading 8528. The product data sheet lists computer graphics compatibility standards of the product, namely, WUXGA, UXGA, WXGA, SXGA , SXGA, XGA, SVGA, VGA resized, ESA, PC and Mac. Further, the VGA port facilitates the connection between the said projector and a laptop/ computer. Therefore it is evident that the projector in question is designed for use with an automatic data processing machine'. The projector under consideration has got certain additional ports such HDMI S-Video' audio-video, which make it capable of being a video projector and consequently classifiable under CTH 85286900 also. GI Rule 3 states that the heading which provides the most specific description shall be preferred to headings providing a more general description - The projector imported by the appellant has got additional features such as an S-Video port, HDMI port etc' The additional ports give additional utility in the form of an audio-video display. 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 dis-entitle the impugned goods from classification under sub-heading 85286200. Sr. No. 17 of Notification No. 2412005-Customs, dated 01.03.2005, as amended, exempts all goods under heading 852862. As the impugned goods are held as classifiable under sub-heading 85286200, they are entitled to the exemption. The Optoma X400LVe projectors are classifiable under sub-heading 85286200 of the first schedule to the Customs Tariff Act, 1975 and would be eligible to avail benefit of Sr. No. 17 of Notification No. 2412005-Customs, dated 01.03.2005, as amended.
Issues Involved:
Classification of data projector (Optoma X400LVe) and applicability of Sr. No. 17 of Notification No. 24/2005-customs. Detailed Analysis: Issue 1: Classification of Data Projector The applicant, a trading company, sought advance rulings on the classification of data projectors imported from China. The projectors were described as being used in schools, business meetings, and conferences, primarily with an automatic data processing system. The applicant proposed CTH 85286200 for classification, emphasizing the projectors' ability to connect to an automatic data processing system. Analysis: - The applicant compared their device with home theatre projectors, highlighting differences in features such as resolution, contrast ratio, and aspect ratio. - The projectors' compatibility with an automatic data processing system was a crucial factor for classification. - Legal precedents were cited to support the classification under CTH 85286200 for projectors designed for use with an automatic data processing system. Issue 2: Applicability of Sr. No. 17 of Notification No. 24/2005-customs The applicant claimed eligibility for a nil rate of duty under Sr. No. 17 of the Notification for the imported data projectors. Analysis: - The applicant declared their intention to import through the jurisdiction of the Commissioner of Customs, Mumbai, Zone II. - Despite no response from the jurisdictional authority, the applicant presented their case during the hearing. - The ruling was made based on the available information, as no comments were received from the jurisdictional authority. Conclusion: The ruling determined that the Optoma X400LVe projectors are classifiable under sub-heading 85286200 of the Customs Tariff Act, 1975. Consequently, the projectors were deemed eligible for the benefit of Sr. No. 17 of Notification No. 24/2005-customs, entitling them to an exemption. In summary, the judgment thoroughly analyzed the classification of the data projectors based on their features and compatibility with an automatic data processing system. The ruling also addressed the applicability of the specific customs notification for duty exemption, providing a detailed explanation for the decision reached by the Customs Authority for Advance Rulings in Mumbai.
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