In re Audio Distribution House Pvt. Ltd (CAAR Mumbai)
CAAR held that projectors Optoma X309ST, Optoma X319ST, Optoma W319ST, Optoma ZW350 and Optoma ZX300 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. 24/2005-Customs, dated 01.03.2005, as amended.
FULL TEXT OF ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
Ruling
M/s. Audio Distribution House Pvt. Ltd. filed an application on 22.04.2022 seeking advance rulings on the classification of data projectors Optoma X309ST, Optoma X319ST, Optoma W319ST, Optoma ZW350, Optoma ZX300 and applicability of Sr. No.17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended.
2. The applicant is a registered private limited company engaged in the trading business. They intend to import data projectors mentioned in para I from China. As per the applicant, the subject goods are data projectors used in schools, business meetings, and conferences, and are principally meant for use with an automatic data processing system. They are designed to function in places like conference rooms, business meetings, financial institutions, etc., with a connection to a computer or a laptop. In other words, the subject goods are stated to be designed to enable them to function in well-lit places. The model ZW 350 has a resolution of 1280 x 800 (WXGA), while all other models have a native resolution of 1280 x 768 (XGA). These products support various computer display standards like XGA and WXGA. The products under consideration have brightness specifications in the range of 3500-4000 ANSI lumens. The contrast ratio of the projectors ranges from 20000:1 to 25000:1. The native aspect ratio of the products in question is 4:3. The applicant stated that though in respect of the models, W319ST, ZW350 and ZX300, the aspect ratio can be enhanced to 16:9 or 16:10, the default aspect ratio for its effective functioning is 4:3 and the enhancement capability is only superficial. These devices support connections such as HDMI, VGA-in/out, composite, audio-in/out, USB-A and RS232. They have proposed CTH 85286200 as an appropriate classification, which mentions projectors capable of connecting to an automatic data processing system.
2.1 The applicant has compared their devices with home theatre video projectors, classifiable under CTH 85286900. A home theatre projector generally supports high resolution (4K UHD 3840*2160). They are characterised by high contrast ratio in the range of 100000: lto 1200000:1 and possess a native aspect ratio of 16:9. Therefore, there are significant variations between the features of a data projector and a video projector. It is stated that impugned devices are not home theatre projectors. According to the applicant, subject goods having additional features of HDMI port, composite S-Video port, etc., are data projectors, which are designed primarily to be used with an automatic data processing system. In support of the above, the applicant has submitted the following case laws: –
Epson India Pvt. Ltd. v. Commissioner, (366) ELT 847 (Tri-Chennai);
Commissioner of Customs v. M/s. Epson India Pvt. Ltd., ELTA173 (SC);
Commissioner of Customs v. Vardhman Technology Pvt. Ltd., (301) ELT 42;
M/s. Casio India Co. Pvt. Ltd, V. Commissioner of Customs, (Tribunal Delhi), vide Final order dated 55283/2016;
Sony India Pvt. Ltd. V. Commissioner of Customs and Central Excise, New Delhi, (370) ELT 1774 (7’ri-Del).
2.2 The applicant further stated that they are eligible to claim a nil rate of duty on impugned goods as per Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended.
3. In their CAAR – I form, the applicant has declared that they would import through the jurisdiction of Principal Commissioner/Commissioner of Customs, Mumbai, Zone II. The application was forwarded to the jurisdictional Commissioner of Customs for comments. However, no reply has been received, though reminders have also been sent.
