2009 (11) TMI 931 - AT - Customs

Imported projectors classified under Tariff Item 8528 61 00 for exemption. Distinct from video projectors, eligible for relief.

Acer India (P) Ltd. Versus CC

The appellate tribunal classified the imported projectors under Tariff Item 8528 61 00, eligible for exemption under Notification No. 24/2005-Cus. The ... Classification of imported item - data projectors - classified under Tariff Item 8528 61 00 or under 8528 69 00? - benefit of exemption under N/N. 24/2005-Cus. dated 01.03.2005 - Held that: - when separate entries were created under heading 8528, they are appropriately covered under 8528 61 00 which is applicable to the projectors of a kind solely or principally used in an automatic data processing machine, instead of the residual entry of 8528 69 00. India is a signatory to the Information Technology Agreement. The classification adopted by the Customs officers for these projectors has resulted in the frustration of the ITA in relation to these products. Thus, the object of the exemption N/N. 24/2005 - Cus. is frustrated. Consequently, Indias undertaking to the WTO is also annulled. Hence, the impugned order is not sustainable. Appeal allowed - decided in favor of appellant. Issues: Classification of data projectors under Tariff Item 8528 61 00 or 8528 69 00 and the availability of exemption under Notification No. 24/2005-Cus.Classification Issue Analysis:The issue revolved around the classification of data projectors under Tariff Item 8528 61 00 or 8528 69 00 and the availability of exemption under Notification No. 24/2005-Cus. The appellant contended that the projectors were solely used for data projection, primarily in seminars, presentations, classrooms, and business meetings. They argued that the projectors' native aspect ratio, resolution, and contrast ratio indicated they were data projectors, distinct from video projectors. The appellant emphasized that the projectors were sold to corporates, government organizations, and educational institutions for educational purposes. They also highlighted their involvement in promoting computer-aided education in schools, supporting their claim that the projectors were meant for data projection.Exemption Issue Analysis:The Notification No. 24/2005-Cus. granted exemption from basic customs duty to goods bound by the Information Technology Agreement (ITA). The appellate tribunal examined the projectors' classification under Tariff Item 8528 61 00 and 8528 69 00. They noted that projectors solely or principally used in an automatic data processing system were classified under sub-heading 8528.61. The tribunal observed that the projectors imported by the appellant were principally used for data projection, connected to laptops or desktop computers for presentations and data display. Despite having video compatibility, the projectors' principal use with computer systems qualified them for classification under 8528.61 and entitlement to exemption under Notification No. 24/2005. The tribunal emphasized that the projectors' main function for data projection justified their classification and exemption eligibility, leading to the decision to set aside the lower authority's order and allow all 13 appeals.Conclusion:The judgment resolved the classification issue by determining that the imported projectors were primarily used for data projection, justifying their classification under Tariff Item 8528 61 00 and eligibility for exemption under Notification No. 24/2005-Cus. The tribunal's detailed analysis of the projectors' features and principal use with computer systems supported the decision to grant the exemption and set aside the lower authority's order. The judgment clarified the distinction between data projectors and video projectors based on native aspect ratio, resolution, and contrast ratio, emphasizing the projectors' intended use for educational and business purposes.