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2023 (9) TMI 1294 - AAR - CustomsClassification of goods intended to be imported - Data Projector (Model - ZH 350, ZW350e, ZX 350e) - classifiable under CTH 85286900 or not - applicability of Sr. No. 17 of Notification No. 24/2005-Customs, dated 1-3-2005, 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. The projectors under consideration have got certain additional ports such HDMI x 2, Audio Out, USB-A (5V/1.5A), RS-232, etc., which make them capable of being a video projector and consequently classifiable under CTH 85286900 also. GRI Rule 3 states that the heading which provides the most specific description shall be preferred to headings providing a more general description . The website, https //www.optoma.com/ap/product, of the manufacturer of the impugned devices were referred to understand how these projectors are marketed by the manufacturer. These are listed under the business/education category of projectors on the said website - From the description, it is clear 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 in/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 HDMI x 2, Audio Out, USB-A (5V/1.5A), RS-232, etc. along with the capability to adjust the aspect ratio in 3 models. The presence of additional features cannot disentitle the impugned goods from classification 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 Data Projector (Model - ZH 350, ZW350e, ZX 350e) 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.
Issues Involved:
1. Classification of 'Data Projector' models ZH 350, ZW350e, ZX 350e. 2. Applicability of Sr. No. 17 of Notification No. 24/2005-Customs, dated 1-3-2005, as amended. Detailed Analysis: Classification of 'Data Projector' Models ZH 350, ZW350e, ZX 350e: The applicant, M/s. Audio Distribution House Pvt. Ltd., sought an advance ruling on the classification of 'Data Projector' models ZH 350, ZW350e, ZX 350e. The applicant argued that these models are data projectors used in various professional settings like schools, business meetings, and conferences, and are designed to function with an Automatic Data Processing System (APDS). The features of these projectors include a native resolution ranging from 1024 x 768 to 1920 x 1080, brightness specifications between 3500-4000 ANSI lumens, and a contrast ratio of 30000:1. The applicant proposed classification under CTH 8528 62 00, which covers "Projectors - capable of directly connecting to and designed for use with an automatic data processing machine of Heading 8471." The applicant compared these data projectors with home theatre projectors, which generally support higher resolutions (4K UHD 3840 × 2160), higher contrast ratios (up to 12,00,000:1), and a native aspect ratio of 16:9. The applicant emphasized that the impugned devices are not home theatre projectors but data projectors designed primarily for use with an automatic data processing system. The Authority considered the features of the projectors, including their aspect ratio, native resolution, contrast ratio, and brightness. It was noted that the projectors have a native aspect ratio of 4:3, which is more suitable for documents and presentations, although they can be adjusted to 16:9 or 16:10 for adaptability purposes. The projectors also have lower native resolutions and contrast ratios compared to video projectors but higher brightness, making them suitable for well-lit environments. Applicability of Sr. No. 17 of Notification No. 24/2005-Customs: The Authority examined the relevant Customs Tariff Headings (CTH) and Chapter Notes. CTH 8528 covers "Monitors and projectors, not incorporating television reception apparatus." Sub-heading 8528 62 00 specifically covers "Projectors; capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471." Chapter Note 6(E) to Chapter 84 states that machines working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified according to their respective functions. The Authority found that the projectors in question are designed for use with an automatic data processing machine, as evidenced by their computer compatibility standards and connection ports. The projectors are marketed as data projectors for business and educational purposes, supporting the applicant's claim for classification under sub-heading 8528 62 00. The Authority also considered the presence of additional ports like HDMI, Audio Out, USB-A, and RS-232, which could potentially classify the projectors under CTH 85286900. However, based on GRI Rule 3, which prefers the most specific description, and the product descriptions on the manufacturer's website, the Authority concluded that the principal use of the projectors is with automatic data processing machines. Conclusion: The Authority ruled that the Data Projector models ZH 350, ZW350e, ZX 350e are classifiable under sub-heading 8528 62 00 of the First Schedule to the Customs Tariff Act, 1975. Consequently, these projectors are eligible to avail the benefit of Sr. No. 17 of Notification No. 24/2005-Customs, dated 1-3-2005, as amended, which exempts goods solely or principally used in an automatic data processing system of 8471 and falling under Heading 8528 62.
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