TaxTMI 
TaxTMI 
2018 (3) TMI 364
X X X X Extracts X X X X
X X X X Extracts X X X X
....d SAD at nil rate in terms of Notification No. 29/2010-Cus. dated 27.2.2010. The goods were allowed for clearance. Subsequently, the department entertained a view that the goods are rightly classifiable under 85286900 and are not eligible for exemption as per above notifications. Show cause notice was issued proposing to deny the exemption and for demand of differential duty, interest and for imposing penalties. After due process of law, the original authority held the goods to be classifiable under CTH 85286900 and confirmed demand, interest and imposed penalties. On appeal, Commissioner (Appeals) upheld the same. Hence these appeals. 2. On behalf of the appellant, ld. counsel Shri Harish Bindhumadhavan submitted that the goods imported by the appellants are Business Projectors / Data Projectors and would rightly fall under CTH 85286100. He explained the features of the impugned goods basing upon the catalogue. The appellant imports both Business Projectors and Video Projectors. The Business Projectors are principally meant for use with an Automatic Data Processing system (ADP. They are designed to project in places like conference rooms, business meetings, financial institutio....
X X X X Extracts X X X X
X X X X Extracts X X X X
....on adopted by appellant stating that these projectors are capable of projecting view from any video source namely video player, DVD player etc. and that it can be operated without being connected to ADP machines by virtue of USB, composite video (RCA), S-video ports and Audio-in-ports and playing audio by virtue of in-built speakers. That therefore these projectors cannot be considered as solely and principally used in ADP machine. The ld. counsel submitted that the authorities below have erred in reaching such a conclusion because these are only additional features of the business projectors. These projectors having aspect ratio, contrast ratio and resolution which are compatible for use solely and principally with ADP are rightly classifiable under 8528 61 00. In addition, he submitted that the Board vide Circular No. 33/2007-Cus. dated 10.9.2007 had clarified the issue of classification of such goods, wherein the Board has given a comparative chart of physical characteristics of computer monitor vs. video monitor. All types of projectors which are solely or principally used with ADP machine would fall under 85286100 and that benefit of the Notification would be eligible. Further....
X X X X Extracts X X X X
X X X X Extracts X X X X
....s 8528 Projectors - Of a kind solely or principally used in automatic data processing system of Heading of 8471 85286100 Other 85286900 6. The appellants contend that the impugned goods / data projectors are used solely and principally with ADP machines and therefore would fall within the classification of 85286100. The main ground on which the department has held that the goods are liable to be classified under 85286900 is that goods though compatible for receiving signals from ADP machines are capable of receiving signals from variety of other sources and therefore cannot be held to be solely and principally used with ADP machines. The relevant discussion of the Commissioner (Appeals) in the impugned order is reproduced as under:- "The appellants have produced catalogue of the impugned projectors. The catalogues mention that the projectors are capable of projecting video from any video source viz. video player, DVD player etc. that it can be operated without being connected to ADP machines by virtue of USB, composite video (RCA), S-Video Ports and audio-in-ports and playing audio by virtue of in-built speakers." 7. It is seen that the authorities bel....
X X X X Extracts X X X X
X X X X Extracts X X X X
....tors (Red white and yellow) in the said projector indicated that the said projector was not meant for usage of a kind solely or principally for use in an automatic data processing system of heading 8471. The goods are capable of effective use without being attached to a automatic data processing machine as CTH 8528 61 00 claimed by the respondent are available only for those projectors which are meant for use solely or principally in automatic data processing machine of heading 8471. In these circumstances, these projectors with multiple uses are appropriately classifiable under CTH 8528 69 00. The contention is that the adjudicating authority had erred in relying upon the clarification of the Additional Director, Dept. of Technology, to conclude that the K-yan system is a product falling under HSN 8471. The contention is that it is not known as to what parameters have been used by the department of Technology in giving such opinion, and which is not binding for the customs classification. They placed reliance on Honble Supreme Court decision in O.K. Play (I) Ltd. v. CCE - 2005 (180) E.L.T. 300. 5. The respondent reiterated the finding of the ld. Commissioner and submitted....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... also find that projectors of a kind solely or principally used in an automatic data processing system of Heading 8471 are classified under sub-heading 8528.61. In fact, the impugned goods have been classified by the original authority in respect of 12 out of 13 cases under Heading 8528.61. Only in one case the same has been classified by the original authority in the residual category 8528.69. The impugned exemption Notification No. 24/2005 dated 1.3.2005 as amended during the relevant period exempts all goods falling under sub-heading 8528.61. The description under the sub-heading 8528.61 uses the expression of a kind solely or principally used. From the arguments advanced before us as well as from the details furnished, we find that the impugned projectors are principally used for data projection by being connected to either a laptop or a desktop computer. DVDs can also be played from the DVD drive of a laptop and desktop computer through the projector apart from projecting power point' presentations, word' files, excel' charts etc. It seems to have weighed with the lower appellate authority that the projectors also had video compatibility as mentioned in the relevan....
X X X X Extracts X X X X
X X X X Extracts X X X X
....in the said decisions are as under:- "3. After hearing both sides and perusal of case records, we find that as per Chapter Note 5 (C)and (D) to Chapter 84 the monitors and projectors, not incorporating television reception apparatus are excluded from being classified under Heading 8471 even though they are of the kind solely or principally used in an automatic data processing system. We also find that projectors of a kind solely or principally used in an automatic data processing system of Heading 8471 are classified under sub-heading 8528.61. In fact, the impugned goods have been classified by the original authority in respect of 12 out of 13 cases under Heading 8528.61. Only in one case the same has been classified by the original authority in the residual category 8528.69. The impugned exemption Notification No. 24/2005 dated 1.3.2005 as amended during the relevant period exempts all goods falling under sub-heading 8528.61. The description under the sub-heading 8528.61 uses the expression of a kind solely or principally used. From the arguments advanced before us as well as from the details furnished, we find that the impugned projectors are principally used for data pr....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... tantos out EPSON Both Connectivity Pand EB-455W WXGA, 1280 x 800 2500 Lumens 2000:1 16:10 Business purposes Both EB-905 XGA, 1024 x 768 3000 Lumens 2000:1 4:3 Business purposes Both EB-925 XGA, 1024 x 768 3500 Lumens 2000:1 4:3 Business purposes Video Input Port - 1 x RCA, 1 x S-Video, 2 x component (via D-sub 15-pin) Audio-L/R port - 1 x RCA Monitor Out port - 1 x D-sub 15-pin (RGB) Audio Out port - 1 x Stereo Mini-Jack HDMI input port USB1 port USB Type 1 USB2 port USB Type 1 LAN port 1 x RJ45 USB(TypeB) port - USB Type 2 Computer1 Input Port -1 x D-sub 15-pin (RGB) Audio1 Port - 1 x Stereo Mini-Jack Computer2 Input Port -1 x D-sub 15-pin (RGB) Audio2 Port - 1 x Stereo Mini-Jack RS-232C Port - 1 x D-sub 9-pin Video Input Port - 1 x RCA, 1 x S-Video, 2x component (via D-sub 15-pin) Audio-L/R port - 1 x RCA Monitor Out port - 1 x D-sub 15-pin (RGB) Audio Out port 1 x Stereo Mini-Jack USB1 port USB Type 1 _ USB2 port USB Type 1 _ LAN port 1 x RJ45 USB(TypeB) port - USB Type 2 Computer1 Input Port -1 x D-sub 15-pin (RGB) Audio1 Port....