Principal use test for data projectors supports classification under computer-linked heading and associated customs exemption

Imported data projectors were discussed as classifiable under Heading 8528.61, which covers projectors principally used with automatic data processing systems. The analysis applied Chapter Note 5(C) and (D) to Chapter 84 and treated principal use as the decisive classification test; ancillary video compatibility did not displace that heading where the goods were mainly used with computers for data projection. On that basis, the exemption linked to the same sub-heading under Notification No. 24/2005 was also treated as available. The matter was stated to follow the assessee's earlier case on the same product, with the demand set aside and consequential relief granted.

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Issues: Whether imported data projectors were classifiable under Heading 8528.61 or Heading 9528.69, and whether they were entitled to exemption under Notification No. 24/2005 dated 01.03.2005.

Analysis: The goods were examined in the light of Chapter Note 5(C) and (D) to Chapter 84 and the tariff description of Heading 8528.61, which covers projectors of a kind solely or principally used with automatic data processing systems. The classification depended on the principal use of the projectors, and the presence of video compatibility did not take them out of that heading where their main use was with computers for data projection. Since the goods fell under the specified sub-heading, the exemption notification applicable to that sub-heading also followed. The matter was treated as covered by the assessee's own earlier case on the same product.

Conclusion: The projectors were held classifiable under Heading 8528.61 and eligible for exemption under Notification No. 24/2005, not under Heading 9528.69.

Final Conclusion: The demand was set aside and the appeal was allowed with consequential relief.

Ratio Decidendi: Where data projectors are principally used with computers for data projection, they are classifiable under the tariff entry for projectors of that kind and are entitled to the exemption attached to that entry, notwithstanding ancillary video compatibility.

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