Authority classifies Data Projector models ZH 350, ZW350e, ZX 350e for customs benefits

IN RE : AUDIO DISTRIBUTION HOUSE PVT. LTD.

IN RE : AUDIO DISTRIBUTION HOUSE PVT. LTD. - 2023 (384) E.L.T. 603 (A. A. R. - Cus. - Mum.) Issues Involved:
1. Classification of 'Data Projector' models ZH 350, ZW350e, ZX 350e.
2. Applicability of Sr. No. 17 of Notification No. 24/2005-Customs, dated 1-3-2005, as amended.

Detailed Analysis:

Classification of 'Data Projector' Models ZH 350, ZW350e, ZX 350e:
The applicant, M/s. Audio Distribution House Pvt. Ltd., sought an advance ruling on the classification of 'Data Projector' models ZH 350, ZW350e, ZX 350e. The applicant argued that these models are data projectors used in various professional settings like schools, business meetings, and conferences, and are designed to function with an Automatic Data Processing System (APDS). The features of these projectors include a native resolution ranging from 1024 x 768 to 1920 x 1080, brightness specifications between 3500-4000 ANSI lumens, and a contrast ratio of 30000:1. The applicant proposed classification under CTH 8528 62 00, which covers 'Projectors - capable of directly connecting to and designed for use with an automatic data processing machine of Heading 8471.'

The applicant compared these data projectors with home theatre projectors, which generally support higher resolutions (4K UHD 3840 × 2160), higher contrast ratios (up to 12,00,000:1), and a native aspect ratio of 16:9. The applicant emphasized that the impugned devices are not home theatre projectors but data projectors designed primarily for use with an automatic data processing system.

The Authority considered the features of the projectors, including their aspect ratio, native resolution, contrast ratio, and brightness. It was noted that the projectors have a native aspect ratio of 4:3, which is more suitable for documents and presentations, although they can be adjusted to 16:9 or 16:10 for adaptability purposes. The projectors also have lower native resolutions and contrast ratios compared to video projectors but higher brightness, making them suitable for well-lit environments.

Applicability of Sr. No. 17 of Notification No. 24/2005-Customs:
The Authority examined the relevant Customs Tariff Headings (CTH) and Chapter Notes. CTH 8528 covers 'Monitors and projectors, not incorporating television reception apparatus.' Sub-heading 8528 62 00 specifically covers 'Projectors; capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471.' Chapter Note 6(E) to Chapter 84 states that machines working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified according to their respective functions.

The Authority found that the projectors in question are designed for use with an automatic data processing machine, as evidenced by their computer compatibility standards and connection ports. The projectors are marketed as data projectors for business and educational purposes, supporting the applicant's claim for classification under sub-heading 8528 62 00.

The Authority also considered the presence of additional ports like HDMI, Audio Out, USB-A, and RS-232, which could potentially classify the projectors under CTH 85286900. However, based on GRI Rule 3, which prefers the most specific description, and the product descriptions on the manufacturer's website, the Authority concluded that the principal use of the projectors is with automatic data processing machines.

Conclusion:
The Authority ruled that the Data Projector models ZH 350, ZW350e, ZX 350e are classifiable under sub-heading 8528 62 00 of the First Schedule to the Customs Tariff Act, 1975. Consequently, these projectors are eligible to avail the benefit of Sr. No. 17 of Notification No. 24/2005-Customs, dated 1-3-2005, as amended, which exempts goods solely or principally used in an automatic data processing system of 8471 and falling under Heading 8528 62.