2024 (1) TMI 147 - AT - Customs

Classification of imported goods - Data Projector Model X 122H DLP XGA Projector 270 3D with carrying case - to be classified under Customs Tariff Heading (CTH) 85286100 as projectors of a kind solely or principally used in an automatic data processing system of heading 8471 or not - exemption from basic customs duty in terms of Notification No. 24/2005-Cus dated 1.3.2005 - HELD THAT - While the common parlance test or the commercial usage test is generally preferable especially while classifying consumer goods but when the goods have to be tested for their sole or principal use, technological capabilities cannot be completely discarded. As per the Appellant the goods in the impugned case have a native resolution of 1024 x 768, native aspect ratio of 4 3 and contrast ratio 3000 1 and a pixel capacity of 1024 x 768 or less, which are normally not capable of efficient reception and projection of television or video signals. This along with other technological features plays a persuasive role in determining its intended use solely and principally with ADP machines. The issue of classification of data projectors of various models has been examined by a Coordinate Bench of this Tribunal at Chennai vide Final Order Nos. 1643-1655/2009 dated 09.21.2009 in the Appellants own case i.e M/s Acer India Pvt Ltd Vs Commissioner of Customs, Chennai 2009 (11) TMI 931 - CESTAT AHMEDABAD where it was held that Looking at the features of the impugned data projectors imported by the appellants, we have not doubt in our mind that the same merit classification under SH 852861 and automatically become entitled to exemption under Notification No. 24/2005 as the same exempts all goods under the said sub-heading. Thus, the video projectors are classifiable under Heading 85286100, they thereby become entitled to exemption under Notification No. 24/2005-Cus. dated 1.3.2005 The impugned order is set aside - appeal allowed.

Summary

Issues Involved:
1. Classification of Data Projectors.
2. Eligibility for Exemption under Notification No. 24/2005-Cus.

Summary:

1. Classification of Data Projectors:

The appellant filed a Bill of Entry for clearing goods described as 'Data Projector Model X 122H DLP XGA Projector 270 3D with carrying case,' seeking classification under CTH 85286100. The lower authority rejected this classification, categorizing the goods under CTH 852869, which was upheld by the Commissioner (Appeals). The appellant argued that the technical specifications of the projectors (native aspect ratio 4:3, contrast ratio 3000:1, brightness 2700 ANSI Lumens, native resolution 1024 x 768) indicate their principal use with automatic data processing (ADP) systems, referencing several case precedents where similar projectors were classified under CTH 85286100.

The Tribunal noted that the Hon'ble Apex Court in Commissioner of Central Excise Vs Wockhardt Life Sciences Ltd. emphasized the importance of 'common parlance test' or 'commercial usage test' in classification, but also acknowledged that technological capabilities cannot be completely discarded when determining the principal use of goods. The Tribunal found that the technical features of the projectors support their classification under CTH 85286100, as they are principally used for data projection when connected to laptops or desktop computers.

2. Eligibility for Exemption under Notification No. 24/2005-Cus:

The Tribunal referred to a previous judgment in the appellant's own case (M/s Acer India Pvt Ltd Vs Commissioner of Customs, Chennai) where similar goods were classified under CTH 85286100, making them eligible for exemption under Notification No. 24/2005-Cus. The Tribunal concluded that the projectors in question are classifiable under CTH 85286100 and thereby entitled to the exemption.

Conclusion:

The Tribunal set aside the impugned order and allowed the appeal, holding that the data projectors are classifiable under CTH 85286100 and entitled to exemption under Notification No. 24/2005-Cus dated 1.3.2005, with consequential relief as per law.