In re Audio Distribution House Pvt. Ltd. (CAAR Mumbai)
CAAR Rule that ata 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 01.03.2005, as amended.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING, MUMBAI
M/s. Audio Distribution House Pvt. Ltd. (hereinafter referred to as ‘the applicant’, in short) filed an application for advance ruling before the Customs Authority for Advance Rulings, Mumbai (CAAR, in short). The said application was received in the secretariat of the CAAR, Mumbai on 18.11.2022, along with its enclosures in terms of Section 28H (I) of the Customs Act, 1962 (hereinafter referred to as the ‘Act’). The applicant is seeking advance ruling on the classification of ‘Data Projector’ (Model — ZH 350, ZW350e, ZX 350e) (hereinafter referred to as ‘subject goods’), proposed to be imported 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 pars 1 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 (APDS). They are designed to function in places like conference rooms, business meetings, financial institutions, etc., with connectors matching that of PC, indoor or outdoor projection capability. In other words, the subject goods are designed to enable them to function in well-lit places. The model ZH 350 has a native resolution of 1920 x 1080 (HD), and supports computer signal up to WUXGA. Whereas, the model ZX 350e has a native resolution of 1024 x 768 (XGA) and model ZW 350e has a native resolution of 1280 x 800 (WXGA) and supports computer signal up to UXGA. The products under consideration have brightness specifications in the range of 3500-4000 ANSI lumens. The contrast ratio of the projectors in consideration is 30000:1. The native aspect ratio of the products in question is 4:3. The applicant stated that though in respect of the models, ZH 350, ZW350e, ZX 350e, 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 X 2, Audio Out, USB-A (5V/1.5A) and RS232 and has computer compatibility up to, WUXGA, 1080P UXGA, SXGA+, SXGA, WXGA+, WXGA, 720P, XGA, SVGA and VGA. They have proposed CTH 8528 62 00 as an appropriate classification, which states, ‘Projectors – capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471 along with eligibility benefit of exemption under Sr. No.17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended.
2.1 The applicant has compared the subject goods with home theatre projectors or 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: 1 and 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 the impugned devices are not home theatre projectors. According to the applicant, subject goods 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, (366) ELT A173 (SC);
Commissioner of Customs v. Vardha man Technology Pvt. Ltd., (301) FT T 427;
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 (Tri-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 H. The application was forwarded to the jurisdictional Commissioner of Customs for comments vide this office letter dated 25.11.2022. However, no reply has been received.
4. The application was listed for hearing on 21.12.2022. The applicant was represented by Shri Hari Radhakrishnan, Advocate. No one appeared on behalf of the jurisdictional Commissioner. Shri Radhakrishnan explained the features of three models of data projectors proposed to be imported by them. He explained that in respect of the 3 models, the user can change the aspect ratio as per their requirements.. He explained that the brightness and contrast features of these models are that of data projectors and not video projectors.
5. I have considered all the materials placed before me for the subject products. I have gone through the submissions made by the applicant during the personal hearing. No reply has been received from the jurisdictional Commissioner. In the absence of any such comments on the impugned subject matter, I proceed to render advance rulings on the basis of available information. The issue at hand is to decide the classification of the data projectors ZH 350, ZW350e, ZX 350e and the applicability of Sr. No. 17 of Notification No. 24/2005-Customs, dated 01.03.2005, as amended. 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. Based on its application, a projector can be classified as a business/data projector or as a video/home theatre projector. A business projector is generally brighter and equipped to deal with a variety of media options. They generally have a low contrast ratio. They possess resolution to match computer or laptop screens. The video/home projectors falling under CTH 85286900 are different from business projectors since they are used to project in a small room and small audience with a dark ambience and low/medium lamp brightness. They generally have a high or very high contrast ratio to support movies and gaming projection. They are characterised by high resolution along with connectors supporting audio and video equipment and gaming solutions. They are optimized for film and TV. The critical differences between the two types of projectors can be summarised as below: –
Table 1: Comparison between data projectors under consideration and video projectors
