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2023 (11) TMI 19 - AAR - CustomsClassification of goods proposed to be imported - Data Projector Model (i) ZH 350, (ii) ZW 350e & (iii) ZX 350e - to be classified under Sub-heading 85286200 or under Sub-heading 85286900? - eligibility for exemption from duty vide Serial No. 17 of the Notification No. 24/2005-Cus. dated 1-3-2005, as amended - HELD THAT:- As per technical features stated in the leaftlets of the subject goods, computer compatibility features and input/output connections mentioned therein indicate that subject goods are fitted with connectors characteristics of data processing system. Thus, the subject goods do not merit classification under Sub-heading 85286900. The applicant vide their declaration in the application for advance ruling has stated that projectors in question are not of a kind used as home theatre projectors or video projectors, even going by the resolution output. Further, under Sub-heading 85286200, projectors which are capable of directly connecting to and designed for use with an automatic data processing system of 8471, merit classification therein. Therefore, reference is drawn to Chapter Note of Chapter 84 of the Customs Tariff. Chapter Note 6(C) of Chapter 84 lays down conditions for a unit to be regarded as being part of an automatic data processing system - Note 6(E) of Chapter 84 lays down that machines incorporating or working in conjunction with an automatic data processing machine and performing a specific function other than data processing are to be classified in the headings appropriate to their respective functions or, failing that, in residual headings. Sub-heading 85286200 classify projectors capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471. It is evident that the projectors in question are designed for use with an automatic data processing machine. It also appears that the subject goods has got additional ports which may make it capable of being a video projector, classifiable under 85286900. In this regard, it may be mentioned that rule 3 of General Rules for Interpretation of Import Tariff states that, "the heading which provides the most specific description shall be preferred to headings providing a more general description" - as regards applicability of exemption notification, it is noted that under Sl. No. 17 of Notification No. 24/2005, as amended, all goods of a kind solely or principally used in an automatic data processing system of heading 8471, falling under Sub-heading 852842, 852852 or 852862 are given exemption. Thus, projectors in question are machines working in conjunction with an automatic data processing machine and performing a specific function other than data processing, thus the same merit classification in the headings appropriate to their respective function i.e. 85286200. Moreover, subject goods are eligible for exemption from duties vide Sl. No. 17 of Notification No. 24/2005-Cus. dated 1-3-2005, as amended.
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