TaxTMI 
TaxTMI 
2025 (3) TMI 1568
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.... "Applicant") is providing digital cinema services to various theatres, distributors & advertisers across the country. The company's core business is leasing of Digital Cinema Equipment, "DCE", comprising of a digital cinema projector, digital server, UPS, and VSAT. To give this effect, company is importing Digital Cinema Projectors from vendor located outside India. The information about Digital Cinema Projectors are as follows: - Projector: As per the oxford dictionary the projector is define as "a piece of equipment that projects pictures or films onto a screen or wall" Digital Projector: A digital projector is a device that takes digital video or image data and projects it onto a screen, wall, or other surface for viewing. It typically uses a combination of a light source and a lens system to produce and magnify the image, allowing for large- scale displays. Digital projectors are commonly used for presentations, movie screenings, and educational purposes. 2.2 The purpose of these projectors to project the films which are recorded in digital form. Technology of Digital Cinema Projector: 2.3 These projectors are: a) Based on digital light pro....
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.... display images. Monitors and projectors may be capable of receiving a variety of signals from different sources. However, if they incorporate a television tuner they are considered to be reception apparatus for television. (C) PROJECTORS Projectors enable the image normally reproduced on the screen of a television receiver or of a monitor to be projected on an external surface. They may be based on CRT or flat panel (e.g., DMD, LCD, plasma) technology. This heading excludes, inter alia: (a) ... (b) ... (c) Cinematographic projectors (heading 90.07) and image projectors of heading 90.08" 3.4 The company would like to refer the recent AAR ruling passed by CAAR, Mumbai in case of "Ingram Micro India Pvt Ltd" Appeal no: CAAR/Mum/ARC/02/2024 dated 10.01.2024. It is held that Projectors are classified under the tariff head 8528. 3.5 The applicant submitted that it has come to the knowledge of the company that these: projectors are being classified under the Chapter heading 9007, "Cinematographic cameras and projectors, whether or not Incorporating sound recording or reproducing apparatus", by the other players....
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....ptical parts remain in this heading". 3.7 Based on the above facts, the company seeks guidance on the correct classification of the digital cinema projectors. Port of Import and reply from concerned jurisdictional Commissionerate 4.1 The applicant in their CAAR-1 indicated that they intend to import the subject goods i.e. Digital Cinema Projector at the jurisdiction of Office of the Commissioner of Customs, Air Cargo Complex, Mumbai. The application was forwarded to the Office of the Commissioner of Customs, Air Cargo Complex, Mumbai for their comments on 26.12.2024. 4.2 The concerned Commissionerate vide their letter dated 22.02.25 submitted as follows: ⮚ Since, cinematographic projector is specifically covered under CTH 9007, consequently, the term "projector" being discussed in CTH 8528 talks about the kinds of projectors which are other than cinematographic projectors. ⮚ The sub-heading 852862 specifically covers "Projectors capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471". Projectors that receive data in digital formats, rather than relying on physical film reels, repre....
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....inema projector is correctly classifiable under CTI 90072090 or otherwise. They claimed that as per market player the same is classifiable under CTH 9007 under Cinematographic Projector. He sought one-week time to provide the comments on the submission made by the department. Nobody appeared on behalf of the Department for hearing. Discussion and findings 6.1 I have considered all the materials placed before me in respect of the subject goods. I have gone through the submissions made by the applicant during the personal hearing and comments received from the concerned Commissionerate. I proceed to pronounce a ruling on the basis of information available on record as well as existing legal framework. 6.2 At the outset, I find that the issue raised in the question in the Form CAAR-1 is squarely covered under Section 28H(2) of the Customs Act, 1962, being a matter related to classification of goods under the provisions of this Act. 6.3 Before deciding the issue, let me deliberate on the legal framework prescribed in Customs Tariff Act, 1975, Chapter/ Section notes along with HSN explanatory notes. As per Rule 1 of GRI, the titles of Sections, Chapters and sub-Chap....
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.... compared to traditional film projection. The visual representation of the process involved is shown below: These cinema projectors are principally used in cinema theatres for projection of movies. These cinema projectors do not incorporate video recording and reproducing apparatus. 6.4.3 I note that the Customs Tariff Heading (CTH) 8528 covers "Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus". The relevant Customs Tariff entries and HSN Explanatory Notes to Heading 8528 is reproduced below for ease of reference: Chapter/Sub-heading/Tariff item Heading/Description of goods 8528 Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus - Projectors: 8528 62 00 - Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471 8528 69 00 Other "This heading i....
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....n of projecting movies in theatres, fall within the scope of Chapter Heading 8528 (Monitors and projectors, not incorporating television reception apparatus; reception apparatus for television, whether or not incorporating radio-broadcast receivers or sound or video recording or reproducing apparatus), in accordance with the Explanatory Notes to Chapter 85. It is noted that under the category of projectors classified under CTH 8528, there are two specific entries: CTI 85286200 covers "Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471," while CTI 85286900 covers "Others." In the present case, the digital cinema projectors are primarily used in cinema theatres for the projection of movies and receive input from a server. The applicant, through their email dated 12.03.2025, has also confirmed that these projectors are installed in cinema halls for movie exhibition and are used along with cinema servers. Thus, the subject goods, namely Digital Cinema Projectors, are appropriately classifiable under CTI 85286900 (Projector - Others) of the First Schedule of the Customs Tariff Act, 1975, in accordance with General Inter....
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....as digital format sound tracks are printed either on the edges of the film, outside the sprocket perforations, or between the sprocket perforations. Some commercial films are printed with an analogue sound track and digital timecode information only on the edges of the film, where the digital sound track is not printed on the film but is recorded separately on a CD-ROM. As the film passes through the reader the photoelectric sound-head reads the analogue sound track and the charge-coupled device reads the digital sound track, or in the latter case the timecode information to ensure synchronisation of sound from the CD-ROM with the projected moving pictures. The printing of dual format sound tracks enables sound to be reproduced if one of the sound track formats is damaged or where the sound reproducing apparatus does not have dual format reading capability. Other cinematographic projectors may be equipped with either a photoelectric or a magnetic sound-head depending upon the process used for recording the sound-track or with both types of sound-head for alternative use". From the above, it is evident that a cinematographic projector is designed to project movies from p....