TaxTMI 
TaxTMI 
TaxTMI 
2024 (7) TMI 1753
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.... (hereinafter referred to as 'the subject goods') proposed to be imported. The applicant is also seeking applicability of exemption benefit in terms of SI. No. 17 of Notification No. 24/2005-Cus. dated 01.03.2005 as amended on import of above said Data Projectors. 2. Submission by the Applicant: 2.1 The applicant is a registered private limited company involved in the business of trading. The applicant is also registered under the GST bearing registration No. 27AAOCA 7734LIZ2. The applicant is intending to import "Data Projectors [Model Names (i) AZX360ST (ii) AZW500 (iii) AZH500 (iv) AZH360ST (v) AZH430 (vi) AZH460 (vii) AZH460ST (viii) ZH507 (herein after referred as 'subject goods), from China. 2.2 The applicant has informed that the subject goods are data projectors used in Schools, Business Meetings, and conferences. and are principally meant for use with an Automatic Data Processing System (ADPS). They are designed to function in places like conference rooms, business meetings. financial institutions, etc., with connectors matching that of PC, indoor or outdoor projection capabili....
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....also supports computer signal upto WUXGA. The terms WUXGA (Widescreen Ultra Extra Graphics Array) refers to a computer display standard. It is relevant to note that the resolution of home theatre projectors or video projectors is 4K UHD (3840*2160). Therefore, it is apparent that the projectors in question are not of a kind used as home theatre projectors or video projectors, even going by the resolution output. In addition, the native aspect ratio of the home theatre/video projectors is generally 16:9, whereas the native aspect ratio of the products in question is 4:3. However, the said aspect ratio would be enhanced to 16:9 or 16:10. For the projects of the model AZH the aspect ratio can be enhanced to 16:9 alone. The default ratio is however, 4:3 and the enhancement capability is only superficial. The literatures of all the eight models are enclosed to the CAAR-1 application. All these Models have the light type of "Laser Phosphor which is a Laser Light and this is the new technological development in the Projector Technology, with a Laser Phosphor, the projector light is different in that it uses just one blue layer. Laser projector has better performance in terms of brightness....
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....s reported in 1996 (82) E.L.T. 162 (SC) as held that words in the traffic schedule need to be interpreted by considering the rapid development of technology as the industry cannot be static. The Hon'ble Supreme Court held as follows: "3. The High Court in the impugned order noted that the stand of the Customs authorities was that the words "switches, miniaturised" as component parts of hearing aids should be understood to mean only those types of switches which were generally used in the manufacture of hearing aids at the time of publication of the Import Policy for the relevant year, namely 1977, and that these words could not be said to include any other type of switch even if such other type of switch could be used in the manufacture of hearing aids. The Division Bench observed, in our view, very rightly, that such an interpretation overlooked that industry was not static and that there was continuous technical progress therein. New processes and new methods developed from time to time and new material and components or types of components superseded others. It was unreasonable to give a static interpretation to words used in a tariff schedule ignoring the rapid mar....
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.... Commissioner of Customs, New Delhi, vide Final order dated 55283/2016. 3.7 It is also submitted that the principal bench of the Hon'ble CESTAT in the case of Sony India Pvt. Ltd. V. Commissioner of Customs and Central Excise, New Delhi reported in 2019 (370) ELT 1774 (Tri-Del) has held in Para No. 35 and 36, 40 and 41 as follows: "35. The Commissioner has, notwithstanding, the judgments of the Supreme Court and the decisions of the Tribunal on this issue, concluded that the colour data projectors imported by Sony India would fall under 8528 69 00. This is very disturbing and a serious note needs be taken of such a deviation as it is expected of Adjudicating Officers to follow the binding decisions. At this stage, it also needs to be remembered that the Supreme Court, while dismissing the Civil Appeal filed by the Department to assail the order passed by the Tribunal in M/s. Epson India Pvt. Ltd., had also observed that there was no reason to deviate from the view expressed by the Tribunal which had followed the earlier decisions of the Tribunal in the matter in issue and the decisions had also attained finality, including on account of the dismissal of the two Civi....
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.... grants exemption from payment of the whole of the Customs duty if the product is covered by the description specified in Column (3). All goods falling under 8528 61 are specified in Column (3) of the Table. It is only when there is any ambiguity in the Exemption Notification, that the Notification is required to be interpreted in favour of the Revenue. This is also what was noted by the Commissioner while referring to the judgment of the Supreme Court in Dilip Kumar for the Commissioner did note that the said judgment of the Supreme Court was in relation to ambiguity in an Exemption Notification. There is no ambiguity in the Exemption Notification dated 1st March, 2005 and indeed none has been pointed out by the Commissioner in the impugned order. Reliance placed by the Commissioner on the judgment in Dilip Kumar is, therefore, misplaced, and it appears that reliance was placed only to overcome the binding decisions.". 3.8 The applicant submits that for a similar model of projector, namely, Optoma SA520, this Hon'ble Authority, vide Ruling No. CAAR/Mum/ARC/70/2021 dated 20.12.2021 has ruled that the projector is classifiable under CTH 8528 6200 and is eligible to avail the ....
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....ion No. 24/2005-Cus. dated 01.03.2005 which provides exemption from payment of whole of duty of customs on goods classifiable under tariff heading at six-digit level, namely 852842, 852852 or 852862. For better understanding relevant extract of the said notification are reproduced below: - Sr. No Chapter Head Description/Condition 17 8528 42, 8528 52 or 8528 62 All goods of a kind solely or principally used in an automatic data processing system of heading 8471 From above it is clear that exemption notification is applicable for goods which are meant to be "solely or principally used in automatic data processing system of heading 847!". On perusal of catalogue of the subject goods, it appeared that goods are for multipurpose projection having HDMI/VGA/USB/ Mobile connectivity facilities and thus can be used in other machines other than Automatic Data Processing Systems of heading 8471. Further, with an optional HDCAST Pro Dongle, the impugned goods can wirelessly be connected to Laptop, Tablet or Mobile device and can share streaming videos, Photos or documents to the BIG Screen and appears especially designed for Business, Education Environments, auditorium....
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....eme Court judgement- in the matter of CC Vs Lekhraj Jessumal and Sons 1996 (82) ELT 162(SC). He also cited several other references of this authority in which the similar judgement is passed. He contended that their subject impart merit classification under CTH 85286200 and entitled for the exemption under Notification No 24/2005-Cus dated 01.03.2005. Nobody appeared from the department side for PH either online or in person. 5.2 The applicant through their authorized representative submitted additional submission letter dated 01.02.2024 wherein they have submitted clarification regarding Contrast ratio of products in consideration. The submission has been taken on record. 5.3 The applicant through their authorized representative vide their letter dated 07.03.2024 has submitted rebuttal on the comments dated 29.12.2023 wherein the applicant has categorically denied assumption of the jurisdictional Commissionerate and has submitted justifications regarding the applicability of benefit under Sr. No. 17 of Notification No. 24/2005-Cus dated 01.03.2005. The submissions are taken on record. 6.1 I have considered all the materials placed before me for the subject products. I hav....
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....tching devices, making presentation and display hassle-free. It can be turned into a smart projector by connecting an HDMI dongle like Google Chromecast, Amazon Fire TV, Apple TV or Roku stick. It is also pertinent to mention that manufacturer himself is advertising these functions on the website. From above it is concluded that the Projectors mentioned above are not meant to be solely or principally used in an automatic data processing system of heading 8471. Hence, benefit of Sr. no 1.7 of Notification 24/2005 dated 01.03.2005 for subject goods is not eligible. 6.3 I find that a projector is an optical device that projects an image/video onto a surface, commonly a projection screen. The idea of a projector is to convert a small image into a much larger one so that a greater number of people can see it. A projector accepts a video/image as an input, processes it with the assistance of its inbuilt optical projection system consisting of a lens and optical source and projects the enhanced output on the projection screen. Therefore, the compatibility of a projector with input devices, such as a computer, a DVD player, etc. feeding images/videos to it and its ability to project the....
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....eatre projectors employ this aspect ratio. Business projectors usually have an aspect ratio of 4:3, as this is more suitable for documents and presentations. Though in respect of all the AZH models, ZH 350, ZW350e, ZX 350e, the aspect ratio can be enhanced to 16:9 alone, in the remaining models the aspect ratio can be enhanced to 16:9 or 16:10. The applicant has stated that the default ratio is however 4:3 and the enhancement capability is only superficial. 6.4 Rule 1 of the GI Rules lays down that the titles of sections, chapters and sub-chapters are provided for ease of reference only; for legal purposes, classification shall be determined according to the terms of the headings and any relative section or chapter notes. The relevant CTHs are reproduced below: CTH 8528 covers, "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. The third I-dash sub-heading falling under CTH 85286200 covers, "Projectors; capable of directly connecting to and designed for use with an automatic data processing mac....
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....p box to an output device such as television, projector, desktop monitor, laptop, speakers etc. It provides an interface between any audio Video sources such as set top box, DVD Player or A/V receiver, Audio Video Monitor such as digital television etc. HDMI is one of the most useful and most common port. The HDMI port can be used for video, audio, computers as well as in Smart TV. The devices that can be associated/connected with these HDMI ports may be as follows: i. Modern Game Console ii. Media Players iii. DVRS iv. Sound Systems v. Computers vi. Streaming Devices vii. Set Top Box viii. Blu-ray Player etc. 6.6 From the wording used in the Sr. No. 17 of the exemption Notification No. 24/2005- Cus dated 01.03.2005 it is quite clear and un ambiguous that only those Projectors qualify for exemption when solely or principally used in an ADP System of heading 8471. Contrarily, in the instant case the subject Projectors can also be connected with a number of other electronic devices like modern game console, Media players, DVRS, sound systems, streaming devices, Set Top Box, Blu-ray player etc. along with co....
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....ojectors merely having additional function cannot be denied classification under CTH 85286100 (erstwhile tariff heading for projectors capable of directly connecting to and designed for use with an automatic data processing system of heading 8471). Therefore, the goods under consideration are classifiable under sub-heading 85286200. 7. I find from the Applicant's website that a few of such Projectors (e.g. AZW500, AZH500) can be turned into Smart projectors by connecting an HDMI Dongle like Google Chromecast, Amazon Fire TV, Apple TV or Roku Stick. The screenshot of the website is as below: Dual HDMI inputs With dual HDMI inputs, you can connect to different devices such as your set-top box, laptop, PC, Blu-ray player or media streamer easily by assigning them to different ports. There is no need for continuous plug or unplugging when switching devices, making presentation and display hassle-free. You can even turn it into a smart projector by connecting an HDMI dongle like Google Chromecast(tm), Amazon Fire TV, Apple TV(tm) or Roku(r) stick. (Source: https://www.optoma.co.in/product/azw500=) From the above it appears that such projectors can be run without any c....
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.... It can be seen that if the brightness is set to 50% of the standard of the projector it comes exactly the same threshold of the video projector (i.e. 3600 lumens to 1800 lumens). 8.2.3 It appears that these aspects/features (viz. Native Aspects Ratio, Brightness, overlapping Contrast Ratio) were not one of the subject matter before the Hon'ble Tribunal in that case to determine compatibility and connect-ability of the Projector with a Non ADP Machine. 8.3 In Bhavnagar University vs. Palitana Sugar Mills Pvt. Ltd (2003) 2 SCC 111 (vide para 59), Hon'ble Supreme Court observed that It is well settled that a little difference in facts or additional facts may make a lot of difference in the precedential value of a decision. The case laws relied upon by the applicant is not squarely applicable to this case. 8.4 It is worthwhile to note that the applicant has not substantiated their contention that the various ports available in such Projectors (e.g. HDMI) can only be connected to an ADP Machine and not otherwise. Similarly, the ability to connect these ports with Non-ADP machine is not categorically denied either, in their application or any submission. 9.1 It is ....