Classification of data projectors under ADP heading upheld, with customs exemption allowed for principal use with computer systems.

Imported data projectors were held classifiable under heading 8528.61 because their specifications and literature showed principal use with computer systems for data projection. Additional ports and video compatibility did not change the essential character or principal use of the goods. As projectors of a kind solely or principally used in an automatic data processing system, they fell within the tariff description and qualified for exemption under Notification No. 24/2005-CUS. The impugned order was therefore set aside in favour of the importer.

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Issues: Whether the imported projectors were correctly classifiable under heading 8528.61 as projectors of a kind solely or principally used in an automatic data processing system, and whether they were entitled to exemption under Notification No. 24/2005-CUS dated 01/03/2005.

Analysis: The specifications and literature of the imported goods showed that they were data projectors meant for connection with computer systems and principally used for data projection. The presence of additional ports and video compatibility did not alter the principal use of the goods. Goods falling within the description of projectors of a kind solely or principally used in an automatic data processing system were therefore covered by the relevant tariff heading, and the exemption notification applied to goods under that heading. The view was consistent with prior tribunal decisions on similar facts.

Conclusion: The goods were classifiable under heading 8528.61 and the exemption under Notification No. 24/2005-CUS dated 01/03/2005 was admissible; the impugned order was set aside in favour of the assessee.

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