DLP Projectors classified as Data Projectors: CESTAT confirms Exemption for Principal use in Data Projection

CESTAT confirmed that DLP projectors used primarily for data projection are exempt from taxes. The ruling followed a dispute over whether such devices should be classified as audio-visual equipment, which attracts higher taxes, or as data projectors eligible for tax exemption. The court determined that because these projectors are principally used for data, they qualify for the exemption. This ruling is expected to bring clarity for manufacturers and importers about the tax classifications of similar devices.