TMI Blog2006 (12) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... ub Heading (CSH) 84714191 of both Customs and Excise Tariff Acts. Before the lower appellate authority, the appellants had submitted a technical write-up along with a statement from a Professor of IIT, Mumbai and a letter conveying the opinion of the Additional Director, Ministry of Communications and Information Technology, Department of Information Technology, Government of India in support of the classification claimed. The write-up described the item as an integrated computer system, a new product, for group learning. The machine has a powerful projector attached to it for the purpose. 2. As per the user manual the product is a Compact Media Centre (also called 'K-.Yan') with multifarious uses for classrooms, coaching classes, mini theatres, corporate offices, mini community centres, rural areas etc. The system is a multimedia unit, which can play DVDs/VCDs/Audio CDs and provides ultra large flat TV experience. It can play movies, TV channels, songs and can be used to play games. Accessories such as additional speakers can be attached to it to enhance the sound; with a web camera and broad band connection it would be a cheap Audio-Video conferencing solution for corporate o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... For the keyboard and remote. (xii) CD Kit - CDs with essential software. They had stated that Professor Kirti Trivedi of IIT, Mumbai and the Additional Director, Ministry of Communications and Information Technology, Department of Information Technology, Government of India had certified that the subject product combined the computing power of a computer with large screen display provided by an in-built projection system through the use of technology for large screen projection to a wider audience. The Additional Director had also certified that the item was an IT product falling under Heading CTH 8471. 5. It was further submitted that projector in the system was an out put device. The projector could not function as a stand alone projector in the system. It worked only when the processing unit was on, as an out put device. It was not disputed by the lower authorities that the power supply to the projector had been directly connected to the computer power supply and power came only through the computer power supply and all other connections and inputs to the projector had been blocked and disabled from use in the design of the said product in which an internal VGA cable co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the additional facility of a lens which could project data that usually appeared on a monitor. It had a projector with in-built lens for the purpose. The equipment could not be considered to be a projector incorporating a computer, the lens being technically not an important part of the main equipment, which was a computer. The subject item was not like several machines such as a CNC machine, which carried out specific individual functions with the aid of a computer. Several machines such as cars also incorporated computers and operated with its aid. It was settled law that classification of an item under a particular entry had to be governed by the meaning attached to it by the community well versed with it or dealing with it. The Additional Director, Directorate of Information Technology, Government of India, had vide letter No. 5(8)/2005 - IPHW dated 18-8-2005, certified that the subject item was a computer and it was classifiable as a computer. 8. The Ld. JCDR argued that the item was a combination of a projector and a desktop PC. It was not a computer but a projector working with the aid of a computer and projecting the output was not a function of a computer. According to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l computers." Going by the essential character of video projection, he decided that the item had to be classified as a video projector operating on a computer technically. He also felt that the trade recognized the item as a Compact Media Centre, which reflected its true functions, Before passing the order, the Assistant Commissioner had ob served that the goods might be in "technical/scientific sense a computer system but in the commercial parlance it is a Compact Media Centre operating on the principles of computer science technology". 11. In the impugned order, the lower appellate authority has upheld the order of the original authority. He found that the impugned machines had more than one function and had to be classified as per Note 3 of Section XVI of the Customs Tariff. He also observed that the item had multifarious functions as that of a computer, of a projector, of a TV, of a DVD/VCD/Audio CD player and also video conferencing equipment. He made the following observation in the impugned order: "The removal of the ordinary computer screen and its replacement by a data projector has synergized the product from being a mere personal computer for use by one person, to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inal authority also found the equipment to be a computer with a built in data projector for the display of the processed data on a large screen which was not possible with the 'conventional computers'. He had also found that CMC was a digital video projector which was a self contained data projection unit primarily used for computer based presentation and could also handle additional data sources such as DVDs. The original authority also had observed that the equipment was a computer system in technical and scientific sense but was a Compact Media Centre in commercial parlance operating on the principles of computer science technology. All these findings only go to establish that the item is a multimedia computer which has been designed in tune with the state-of-the art technology. CMC has been designed by IIT Mumbai. It is a new product and it is only getting introduced to the common public. Therefore, CMC is not known to the trading community also as a computer or projector. As regards such scientific devices, the test should be as to how the people who use the same or are well versed with the same understand it. In the instant case, the Additional Director, Department of Technol ..... X X X X Extracts X X X X X X X X Extracts X X X X
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