Case Law Details
In re Supertron Electronics Pvt. Ltd (CAAR Delhi)
Classification on import of Data Projector- 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 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”. The applicant has declared that the projectors 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. From the above description, it is clear that these projectors are principally meant for use with an automatic data processing machine. Though, these projectors appear to have additional features to act as video projector, however, presence of such additional features cannot dis-entitle the subject goods from classification under Sub-heading 85286200. Further, as regards applicability of exemption notification, it is noted that vide SI. 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 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 SI. No. 17 of Notification No. 24/2005-Cus. dated 01.03.2005, as amended.
FULL TEXT OF THE ORDER OF CUSTOMS AUTHORITY OF ADVANCE RULING,DELHI
M/s. Supertron Electronics Pvt. Ltd., “Supertron House”, No. 2, Cooper Lane, Kolkata-700001, having IEC No. 0295000473 and PAN-AADCS5971L (applicant, in short) has filed an application dated 21.07.2022, received in this office on 10.08.2022 seeking advance ruling under section 28-1–I of the Customs Act, 1962 before the Customs Authority for Advance Rulings, New Delhi (CAAR. New Delhi in short). The application was accordingly registered under Serial No. 14/2022 dated 10.08.2022.
2. The applicant, vide the aforesaid application, has sought ruling on the question of classification of the proposed item of import namely, Data Projector [Model X319ST] (subject goods, in short) and eligibility of exemption from duties vide SI.No.17 of exemption Notification No. 24/2005-Cus. dated 01.03.2005, as amended by Notification No.67/2016 dated 31.12.2016.
3. The applicant intends to import subject goods from China. It is also stated in the application that 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; subject goods are designed in such a way to function in places like conference rooms, business meetings, financial institutions, etc., with connectors matching that of PC, indoor or outdoor projection capability. The applicant is of the view that the subject goods are classifiable under Subheading 85286200 of the Customs Tariff and exemption from Customs duty vide Notification No. 24/2005-Cus. dated 01.03.2005 (SI. No.17, as inserted by Notification No. 67/2016 dated 31.12.2016) dated 01.03.2005, is admissible. Accordingly, the applicant raised the question for issue of a ruling on classification of the subject goods under Subheading 85286200 and eligibility for exemption from duty vide SI. No. 17 of Notification No. 24/2005-Cus. dated 01.03.2005, as amended.
4.1 The applicant has also stated in the application that subject goods are data Projectors, which are designed primarily to be used with an automatic data processing system, along with additional features of HDMI port, S-Video port, etc.; Sub-heading 85286200 clearly mentions that only projectors which are capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471 shall be classified under the said Sub-heading; therefore, Model X 319ST merit classification under Sub-heading 85286200. It is also stated that data projector model X319ST has a native resolution of 1024*768 (XGA); it is relevant to note that the resolution of home theatre projectors or video projectors is 4K UHD (3840*2160); therefore, it is apparent that the projectors in question are not of a kind used as home theatre projectors or video projectors, even going by the resolution output; the contrast ratio of the projector in consideration is 25,000:1, whereas, the contrast ratio of home theatre/video projectors is in the range of 1,00,000:1 and 12,00,000:1; in addition, the native aspect ratio of the home theatre/video projectors is 16:9, whereas the native aspect ratio of the product in question is 4:3. The applicant has also placed reliance on the decision in Epson India Pvt. Ltd. v. Commissioner reported in 2019 (366) ELT 847 (Tri-Chennai) stating that in the afore-said decision, the Hon’ble Tribunal, Chennai, had held that the projectors which are principally used for data projection by being connected to either a laptop or a desktop computer shall be eligible to be classified under CTH 8528 6100 (erstwhile tariff heading for projectors capable of directly connecting to and designed for use with an automatic data processing system of heading 8471); the said decision has already been confirmed by the Hon’ble Supreme Court in Commissioner of Customs V. M/s. Epson India Pvt, Ltd reported in 2019 (366) ELT A173 (SC).
4.2 It is also stated that the Hon’ble Tribunal, Mumbai, has held, in Commissioner of Customs v. Vardhaman Technology Pvt. Ltd., reported in 2014 (301) ELT 427, that the presence of video port, S-video port, HDMI, RCA etc. in the data projectors were insignificant, for the purpose for classification, when the primary function is to project data by connecting to an Automatic Data Processing System; in addition, the afore-said decision has been followed by the Hon’ble Tribunal, New Delhi, in M/s Casio India Co. Pvt. Ltd. vs Commissioner of Customs, New Delhi, vide Final order dated 55283/2016.
4.3 It is further submitted by the applicant that for an identical model, the Hon’ble Authority, vide Ruling No. CAAR/Mum/ARC/I6/2022 dated 08.06.2022 has ruled that the projector is classifiable under CTH 8528 6200 and is eligible to avail the benefit of SI. No. 17 of Notification No. 24/2005-Cus. dated 01.03.2005; the said Ruling is squarely applicable to the present case; from the above decisions of the Hon’ble CESTAT, some of which have been affirmed by the Hon’ble Supreme Court and from the Advance Ruling mentioned above, it is apparent that the classification of color data projector has attained finality and there is no room for any doubt with regard to the fact that the goods are classifiable under 8528 6200 and are entitled to avail the benefit of the benefit of SI. No. 17 of Notification No. 24/2005-Cus. dated 01.03.2005
5.1 Comments in the matter have been received from the concerned Commissioner of Customs, Import Commissionerate, Chennai wherein, it is stated inter-alia that as per the technical specifications submitted by the applicant w.r.t. rulings issued by CAAR, Mumbai in respect of M/s. Audio Distribution House Pvt. Ltd. [Ruling No. CAAR/Mum/ARC/63/2021 dated 28.10.21] and CAAR, New Delhi in respect of M/s. Supertron Electronics Pvt. Ltd. [CAAR/Delhi/Supertron/16/2022 dated 23.12.2022] on classification of data projector, it is noted that the specifications clarifies that the goods are meant for connecting to ADPs; the features of data projector (product in consideration) such as native aspect ratio, native resolution etc. are differentiating them to video projectors (85286900); hence the subject goods, data projectors which are capable of connecting to an automatic data processing system are classifiable under CTH 85286200 and would be eligible for benefit of SI. No. 17 of Notification No. 24/2005-Cus. dated 01.03.2005 (as amended) as proposed by the applicant.
5.2 As regards application for advance ruling filed by the same applicant in respect of other similar models of data projectors, personal hearing was held on 28.11.2022 in virtual mode. The authorized representative of the applicant vide email dated 28.11.2022 stated that the arguments made during the hearing for application of advance ruling vide F.No. VIII/CAAR/Delhi/Supertron/06/2022 would equally apply for the product namely, model: X319ST and it was also mentioned that CAAR, Mumbai vide Ruling No. CAAR/Mum/ARC/16/2022 dated 08.06.2022 for the model: X3I9ST has held that the said projector is classifiable under 85286200 and is eligible for benefit of SI. No. 17 of Notification No. 24/2005-Cus. dated 01.03.2005. In the personal hearing for application of advance ruling vide F.No. VIII/CAAR/Delhi/Supertron/06/2022, the representative of the applicant while referring to the technical specifications of the goods in question such as contrast ratio, resolution etc. claimed that such goods are data projectors and not video projectors. In this regard, he also referred to the judgement of CESTAT in the matter of M/s. Casio India Co. Pvt. Ltd., and comments of the concerned Principal Commissioner/Commissioner of Customs in support of their claim regarding classification and applicability of exemption vide Notification No. 24/2005-Cus. dated 01.03.2005. Lastly, the Authority asked him as to whether any case related to classification and exemption notification is pending in respect of the goods in question before any officer of Customs? The representative of the applicant answered the query in negative.
6. Finding that the application is valid in terms of the provisions of the Customs Act, 1962 and the CAAR Regulations, 2021, having heard the applicant, and recognizing the importance of timely pronouncement of rulings, I proceed to examine the question on merits.
7. Since the question under the application for advance ruling relates to classification of goods proposed to be imported, guidance of the Harmonized Commodity Description and Coding System of the World Customs Organization, to which India is a signatory, would be useful. It is seen that as per Explanatory Notes of Chapter 85, Seventh edition (2022), in heading 8528 of Harmonized Commodity Description and Coding System, projectors are classified. It further states that projectors may be capable of receiving a variety of signals from different sources; however, if they incorporate a television tuner they are considered to be reception apparatus for television. I also note that the said explanatory notes while explaining monitors capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471 has mentioned inter-alia that monitors of this group include monitors fitted with connectors characteristic of data processing system (e.g., RS-232C interface, DIN, D-SUB, VGA, DVI, HDMI or DP (display port) connectors). Further, as regards monitors other than those capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471, it is explained inter-al ia that they are not fitted with connectors characteristics of data processing systems. Though such detailed explanation has not been given in the said explanatory notes as regards, ‘Projectors’. However, it is felt that orderly and systematic reading of the explanatory notes. would make the above explanation applicable in respect of projectors also, meaning thereby that projectors classifiable under 85286900 would also not be fitted with connectors characteristics of data processing system. However, 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.
8. I also note that the projectors not incorporating television reception apparatus are classified under heading 8528 of the first schedule of the Customs Tariff Act. In this regard, the applicant vide their declaration has stated that subject goods do not contain TV tuner. Further, under Subheading 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. Further, under Note 6 (D) (v), it provides that projectors, not incorporating television reception apparatus are not covered under heading 8471 when presented separately, even if they meet all of the conditions of Note 6 (C). Moreover, 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. Subheading 85286200 classify projectors capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471.
9. Further, I have also observed that CAAR Mumbai has issued Ruling No CAAR/Mum/ARC/16/2022 dated 08.06.2022 wherein, it is ruled that Optoma X319ST projectors are classifiable under Sub-heading 85286200 of the First Schedule of the Customs Tariff Act, 1975 and would be eligible to avail benefit of Sr. No. 17 of Notification No. 24/2005-Cus. dated 01.03.2005, as amended.
10. Keeping in view the foregoing, 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 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”. The applicant has declared that the projectors 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. From the above description, it is clear that these projectors are principally meant for use with an automatic data processing machine. Though, these projectors appear to have additional features to act as video projector, however, presence of such additional features cannot dis-entitle the subject goods from classification under Sub-heading 85286200. Further, as regards applicability of exemption notification, it is noted that vide SI. No. 17 of Notification No. 24/2005-Cus. dated 01.03.2005, as amended, all goods of a kind solely or principally used in an automatic data processing system of heading 8471, falling under 852862 are given exemption.
11. Thus, I am of the view that 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 SI. No. 17 of Notification No. 24/2005-Cus. dated 01.03.2005, as amended.
12. I rule accordingly.
