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TMI Blog2018 (3) TMI 364X X X X Extracts X X X X X X X X Extracts X X X X ..... aside - appeal allowed - decided in favor of appellant. - Appeal No. C/40963 & 40964/2015 - Final Order Nos. 40448-40449 / 2018 - Dated:- 19-2-2018 - Ms. Sulekha Beevi C.S., Member (Judicial) And Shri Madhu Mohan Damodhar, Member (Technical) Shri Harish Bindumadhavan, Advocate for the Appellant Shri A. Cletus, Addl. Commissioner (AR) for the Respondent ORDER Per Bench Brief facts are that the appellants imported goods namely Business Projectors (Models EB 1915, EB 455W, 3B 905, EB 925, EB 1880, EB X9, EB X10, EB X11, EBX 14 and EBW12) and filed Bills of Entry for clearance of the same. The Bills of Entry were facilitated through Risk Management System (RMS). The appellant had classified the impugned goods under CTH 85286100 and were assessed to basic customs duty at nil rate of duty in terms of Notification No. 24/2005-Cus. dated 1.3.2005 at Sl. No. 17, Additional Duty of customs at the rate of 10% in terms of Notification No. 2/2008 dated 1.3.2008 at S. No. 63 on MRP basis and education cess at 3% and SAD at nil rate in terms of Notification No. 29/2010-Cus. dated 27.2.2010. The goods were allowed for clearance. Subsequently, the department entertained a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tandard B. Resolution In the Business Projectors, the resolution is not pixel basis whereas in the Video Projectors the resolution is pixel based as shown as VGS / SVGA. The requirement of resolution in Business Projectors are muted / lesser when compared to Video Projectors C. Contrast ratio This indicates the difference between brightest and darkest colour. In Business Projectors the ratio will be 4000:1 where brightness is 4000 and the darkness is 1. As opposed to this, the Video Projectors will have a higher contrast ratio which is usually in the range of 40000:1. D. Lumen (Brightness) Data projectors have higher lumen because of the need to view minute details. The lower the contrast ratio, the higher the lumen. If resolution is higher, it is better viewed in lower lumen. The data projectors have higher optical leg and higher resolution is compared to the video projectors. 2.3 He submitted that the authorities below after perusal of the catalogues describing the specifications and fea ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ue of classification be conclusively decided. He submitted that from the catalogues it can be seen that these projectors are not solely or principally used with ADP and therefore would not fall under CTH 85286100. He adverted to the second page of the catalogue produced before us and submitted that the projector has features like HDMI terminal and PC-Free presentation. Superbly sharp images and audio are made possible through built-in HDMI terminal A JPEG slide show file can be viewed without PC by simply inserting a USB memory device. This indicates that projector is not one which is solely and principally used with ADP machines for HDMI adaptability is usually seen in video projectors which fall under 85286900. The department has rightly classified the projectors under 85286900. 4. Heard both sides. 5. The issue is with regard to classification of the data / business projector imported by the appellant. The competing classification is given as under:- Description of Goods HSN Code Monitors and projectors, not incorporating television reception apparatus, reception apparatus, reception apparatus for television, w ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... whether the projectors having other features like video port, S-video port, HDMI, RCA etc. would be classifiable under 852861900. The relevant portion of the said judgment is reproduced asunder:- 3. Briefly stated facts of the case are that the respondent imported seven consignments of VIVITEK Projectors and filed seven bills of entry classifying the goods under CTH and CETH 8528 61 00 claiming the benefit of exemption under Sr. No. 17 of the Customs Notification No. 24/2005, dated 1-3-2005 as amended. The department was of the view that only those kind of projectors can be classified which are used solely or principally in an automatic data processing system of heading 8471 and which alone are eligible for the benefit of the Notification. Accordingly proceedings were initiated against the respondent and show cause notice was issued against them for demanding duty and along with proposal for penalty. Ld. Commissioner adjudicated the case and held that the imported goods merit classification under CTH 8528 61 00 and dropped the proceedings initiated against the respondent. Hence the appeal. 4. The contention of the Revenue is that the impugned projectors in addition to VG ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nd that it is not in dispute that they are used in automatic data processing system of heading 8471. The only dispute is that they are having additional features which make them not classifiable under 8528 61 00. We find from the records of the case that the product combines the computing power of a computer with large screen display provided by an inbuilt projection system to deliver powerful outcomes through the use of technology for large screen projection to a wider audience. The projection system cannot be used in isolation but replaces the functionality of a monitor. The projectors merely having additional function cannot be a ground for classifying it other than 8528 61 00. This issue was before the Tribunal in the case of Aveco Viscomm Pvt. Ltd. (supra) and Celetronics India P. Ltd. (supra) wherein the cases were decided in favour of the importer/assessee. 10. The Chennai Bench of the Tribunal, on identical facts, in the case of M/s. Acer India (P) Ltd. (supra), had analyzed the issue and observed as under:- 3. After hearing both sides and perusal of case records, we find that as per Chapter Note 5 (C)and (D) to Chapter 84 the monitors and projectors, not incorpo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n contention of the appellant is that item imported is principally used in Automatic Data Processing system of Heading 8471 and item normally is not for television or for video playing company engaged in entertaining business. The appellant also emphasizes that aspect ratio of their import goods namely Data Projectors is 4:3 whereas aspect ratio of video projector is 6:9; the contrast ratio for their import goods namely Data Projector is 2000:1, whereas the contrast ratio of video projector is 40000:1; and the Luminosity of their import goods namely data projector is between 2500 to 3000 lumes whereas video projectors have the luminosity of 1600 lumes. 6.2 From the literature produced, it appears that the specifications of the imported goods are for the projectors which are meant for use as data projectors and not as video projectors; therefore, goods would be covered by the description Projectors of a kind solely or principally used in an automatic data processing system of heading 8471, which is the description of the Customs Tariff Heading 82586100 for which the benefit of Notification No.24/2005-Cus. (supra) under its entry No. 17 would be available. The subject issue is c ..... 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