TMI Blog2022 (9) TMI 690X X X X Extracts X X X X X X X X Extracts X X X X ..... e correct test is to find out whether the specification and features are designed in such a way that they are generally or primarily meant for use with ADPS. A Division Bench of the Tribunal in Sony India, after referring to the earlier Division Bench decisions of the Tribunal in ACER INDIA (P) LTD. VERSUS CC [ 2009 (11) TMI 931 - CESTAT AHMEDABAD ], COMMR. OF CUS. C. EX., HYDERABAD-II VERSUS AVECO VISCOMM PRIVATE LTD. [ 2010 (9) TMI 436 - CESTAT, BANGALORE ], COMMISSIONER OF CUSTOMS (I), ACC, MUMBAI VERSUS VARDHAMAN TECHNOLOGY P LTD [ 2013 (8) TMI 271 - CESTAT MUMBAI ], held that the colour data projectors imported by the appellant would be classifiable under CTI 8528 61 00. The addition of multiple ports in the goods will not take away the basic nature of the goods, which is to work in conjunction with ADPS. This would continue to remain the principal function of the goods. The presence of such ports is only to ensure their use with laptops and ADPS. Therefore, even post 01.07.2017, goods would be classifiable under CTI 8528 62 00 and the decisions of the Tribunal rendered for the period prior to 01.07.2017 will continue to apply to projectors imported w.e.f. 01.01.2007 - ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng total value of Rs. 1,08,52,755/- (Rupees One Crore Eight Lakh Fifty Three Thousand Seven Hundred Fifty Five Only) are hereby confiscated under the provisions of Section 111 (m) of the Customs Act, 1962. However, I give an option to M/s. BenQ India Pvt. Ltd. to redeem the said goods upon payment of Redemption Fine Commissioneratewise as per chart given below under the provisions of Section 125 of the Customs Act, 1962: S. No. Name of Commissionerate Redemption Fine (in Rs) 1. Air Cargo Complex, Chennai 45,000/- 2 Sea Port, Chennai 90,000/- 3. Air Cargo Complex, Mumbai 5,000/- 4. Air Cargo Complex, Delhi 9,00,000/- Total 10,40,000/- (iii) I hold the impugned goods imported in the past by M/s. BenQ India Pvt. Ltd. under the Bills of Entry, as detailed in the Annexures- A, B, C, D, E, F and G of the show cause notice with a total a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... frain from imposing any penalty upon M/s. BenQ India Pvt. Ltd. under section 112 (a) of the Customs Act, 1962 in terms of proviso 5 of section 114A of the Customs Act, 1962. (viii) I however, do not impose penalty upon M/s. BenQ India Pvt. Ltd. under Section 114AA of the Customs Act, 1962. 2.2 I impose penalty of As. 11,00,000/ - (Rupees Eleven Lakh only) under section 112(a) of the Customs Act, 1962 upon each of these i.e., (i) Shri Rajeev Singh, Managing Director, M/s BenQ India Pvt. Ltd. (ii) Shri Vijay Sharma, Business Manager (Projectors) of M/s. BenQ India Pvt. Ltd, (iii) Shri Hitesh Kumar, Manager (Supply Chain) of M/s. BenQ India Pvt. Ltd, (iv) Shri R. Ravichandran, Managing Director of M/s. Blessings Cargo Care Pvt. Ltd, and (v) M/s. Blessings Cargo Care Pvt. Ltd. as indicated portwise in the table given below: S. No. Port of import Penalty under section 112 (a) (in Rs) 1. ACC, Mumbai 5000/- 2. ACC, Chennai 85,000/- 3. Chennai Sea Port ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 1.2017) and CTI 8528 62 00 (post 01.01.2017) under the First Schedule to the Customs Tariff Act, 1975 [the Tariff Act]. On such imports, the appellant has been claiming exemption from payment of BCD under the exemption notification. The appellant also claims to have been discharging customs duty on Video Projectors by classifying them under CTI 8528 69 00 of the Tariff Act. 6. The technical specifications of data projectors and video projectors, as imported by the appellant, on the basis of which these are distinguished is given below: Sl. No. Particulars Data Projector Video Projector 1. Native Aspect Ratio 4:3 or 16:10 16:9 2. Brightness (Luminosity) More than 2500 lumens Less than 2500 lumens 3. Native Resolution 1024x768 1280x800 1900x1200 1920x1080 3480x2160 4096x2160 4. Color Wheel RGB RGBCYM RGBW RGBRGB ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 019 (370) E.L.T. 1774 (Tri.-Del.)]; ii. The goods which are principally used with ADPS are those goods which are inherently capable of connecting with multiple devices but are designed primarily to be used with ADPS. Thus, goods should have functionality and specifications that allow these devices to work optimally with ADPS. In the present case, it is not in dispute that data projectors imported by the appellant are used with an ADPS. Therefore, mere capability of use in both ADPS and non-ADPs environment cannot be the basis for deciding whether projectors are principally to be used with ADPS. The correct test is whether their specification and features are designed in such a way that they generally or primarily are meant for use with ADPS; iii. The addition of multiple ports in the goods does not take away the basic nature of goods, which is to work in conjunction with ADPS. This still remains to be the principal function of the impugned goods. The presence of such ports is only to ensure their use with laptops and ADPS. Consequently, presence of such ports makes them capable of being connected to ADPS. Therefore, even post 31.12.2016, the goods imported by the appellant ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (5) 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 -Cathod-ray tube monitors: 8528 41 00 --Of a kind solely or principally used in an automatic data processing system of heading 8471 u 10% - 8528 49 00 -- Other . - Other monitors: u 10% - 8528 51 00 --Of a kind solely or principally used in an automatic data processing system of Heading 8471 u 10% - 8528 59 00 --Other -Projectors: u 10% - 8528 61 00 --Of a kind solely or ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 8528 42 00 --Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471 u 10% - 8528 49 00 -- Other - Other monitors: u 10% - 8528 52 00 --Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471 u 10% - 8528 59 00 --Other -Projectors: u 10% - 8528 62 00 --Capable of directly connecting to and designed for use with an automatic data processing machine of heading 8471 u 10% - 8528 69 00 --Other -Reception apparatus for television, whether or not incorporating radiobroadcast receivers or sound or video recording or reproducing apparatus: u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r the colour data projectors falling under CTI 8528 61 00 were covered by the exemption notification and in this context the Division Bench observed as follows: 34. A perusal of the aforesaid Exemption Notification clearly indicates that the description of goods specified in Column (3) when imported into India would be exempted from the whole of the duty of Customs leviable thereon. Thus, once the goods are covered by the description in Column (3), they would automatically be exempted from the levy of the whole of the duty of Customs. In the present case, the data colour projectors fall under Heading 8528 61 00 which is at Serial No. 17 of the Notification. They would, therefore, be exempted from the whole of the duty of Customs. 24. In Aveco Viscomm Private Ltd., the issue was whether the data protectors imported by the appellant were to be classified under CTI 8528 61 00 with benefit of the exemption notification or under CTI 8528 69 00 as 'others', wherein benefit of such exemption notification was not available. The Tribunal held that the classification of the colour data projectors would be under CTI 8528 61 00 and the relevant portion of t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . We find from the records of the case that the product combines the computing power of a computer with large screen display provided by an inbuilt projection system to deliver powerful outcomes through the use of technology for large screen projection to a wider audience. The projection system cannot be used in isolation but replace the functionality of a monitor. The projectors merely having additional function cannot be a ground for classifying it other than 852861 00. This issue was before the Tribunal in the case of Aveco Viscomm Pvt. Ltd. (supra) and Celetronics Inda P. Ltd. (supra) wherein the cases were decided in favour of the importer/assessee. 26. The Additional Director has confirmed the demand in the present case on the ground that the presence of multiple connectivity/interface options like USB-B, USB-A, S-Video, HDMI shows that principal function of goods is not to be used with a computer and, therefore, it is not possible to ascertain the primary/principal function of projectors. Consequently, classification under CTI 8528 69 00 was found to be appropriate. 27. The addition of multiple ports in the goods will not take away the basic nature of the goods, which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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