Custom
TRT-2025-
New Delhi High Court
Date:-12-09-22
In:-
Issue Favourable to Tax Payer ?:-
Order date – 12 September 2022
Facts –
- The Appellant, M/s BenQ India Pvt. Ltd., is engaged in the import and sale of projectors in India and has been importing digital projectors from China/ Taiwan by categorizing them as “data projectors” and “video projectors” on the basis of their specifications, characteristics and usage.
- According to the appellant, the data projectors are primarily meant for use with an Automated Data Processing System6 and are designed for projection of data in places like conference rooms, auditorium/lecture halls and classrooms, while Video Projectors are used for entertainment purposes for use in home theatres, for playing games and home cinemas.
- The appellant has been importing the goods since 2012 by classifying them as 'Projectors for Education' or 'Projector to be connected with ADPS under CTI 8528 61 00 (before 01.01.2017) and CTI 8528 62 00 (post 01.01.2017) under the First Schedule to the Customs Tariff Act, 19757. 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 85286900 of the Tariff Act.
- A show cause notice dated 29.10.2018 was issued to the appellant alleging incorrect classification under CTI 8528 61 00/8528 62 00 and wrongful availment of exemption under the exemption notification.
- Aggrieved, the appellant filed an appeal.
Issue –
- Whether the colour data projectors imported is classifiable under CTI 8528 61 00 prior to 01.01.2017 and under CTI 8628 62 00 w.e.f. 01.01.2017 or under the CTI 8528 69 00?
Order –
- The Tribunal observed that the Additional Director has confirmed the demand 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.
- However, the Tribunal was of the view that 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, the same view was taken by Division Bench of the Tribunal in Sony India case.
- Therefore the goods imported by the appellant satisfy the description of the goods in the exemption notification for both the periods and are, therefore, eligible for exemption.
- Appeal allowed.
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