2023 (11) TMI 19 - AAR - Customs

Classification of goods proposed to be imported - Data Projector Model (i) ZH 350 (ii) ZW 350e (iii) ZX 350e - to be classified under Sub-heading 85286200 or under Sub-heading 85286900? - eligibility for exemption from duty vide Serial No. 17 of the Notification No. 24/2005-Cus. dated 1-3-2005 as amended - HELD THAT - As per technical features stated in the leaftlets of the subject goods computer compatibility features and input/output connections mentioned therein indicate that subject goods are fitted with connectors characteristics of data processing system. Thus the subject goods do not merit classification under Sub-heading 85286900. The applicant vide their declaration in the application for advance ruling has stated that projectors in question are not of a kind used as home theatre projectors or video projectors even going by the resolution output. Further under Sub-heading 85286200 projectors which are capable of directly connecting to and designed for use with an automatic data processing system of 8471 merit classification therein. Therefore reference is drawn to Chapter Note of Chapter 84 of the Customs Tariff. Chapter Note 6(C) of Chapter 84 lays down conditions for a unit to be regarded as being part of an automatic data processing system - Note 6(E) of Chapter 84 lays down 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 or failing that in residual headings. Sub-heading 85286200 classify projectors capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471. 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 may make it capable of being a video projector classifiable under 85286900. 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 - as regards applicability of exemption notification it is noted that under Sl. 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 Sub-heading 852842 852852 or 852862 are given exemption. Thus 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 vide Sl. No. 17 of Notification No. 24/2005-Cus. dated 1-3-2005 as amended.

Summary

Issues involved:
Classification of imported Data Projector Models ZH 350, ZW 350e, and ZX 350e under Sub-heading 85286200 of the Customs Tariff and eligibility for exemption from duties under Serial No. 17 of Notification No. 24/2005.

Classification Issue:
The applicant sought a ruling on the classification of the Data Projector Models under Sub-heading 85286200 of the Customs Tariff and eligibility for exemption from duties under Serial No. 17 of Notification No. 24/2005. The applicant argued that the projectors are designed to function with an automatic data processing system, not as home theatre or video projectors. Reference was made to previous decisions affirming the classification of similar projectors under CTH 8528 6100. The applicant emphasized technical features and resolutions to support the classification under Sub-heading 85286200.

Legal Precedents:
The applicant cited legal precedents such as decisions by the Hon'ble Tribunal in Chennai and Mumbai, affirming the classification of projectors designed for use with automatic data processing systems. The applicant highlighted that the projectors in question have connectors matching those of PCs and are primarily meant for use in conference rooms and business settings, supporting their classification under Sub-heading 85286200.

Technical Specifications and Exemption Eligibility:
Technical specifications submitted by the applicant clarified that the projectors are meant for connecting to automatic data processing systems, distinguishing them from video projectors. The projectors' features, such as native aspect ratio and resolution, align with classification under Sub-heading 85286200. The applicant's declaration that the projectors are not for home theatre or video purposes further supports their classification and eligibility for exemption under Serial No. 17 of Notification No. 24/2005.

Ruling and Conclusion:
After a virtual hearing and considering the applicant's arguments, the Authority examined the classification question based on the Harmonized Commodity Description and Coding System. It was noted that the projectors in question are designed for use with automatic data processing machines, making them eligible for classification under Sub-heading 85286200. The projectors' additional ports were considered, but the specific description of their use with data processing systems prevailed. Therefore, the projectors were ruled to be eligible for exemption under Serial No. 17 of Notification No. 24/2005, as they work in conjunction with automatic data processing machines and perform a specific function other than data processing.

Separate Judgment by Judge:
No separate judgment was delivered by the Judge in this case.