2019 (3) TMI 705 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL – TMI – Classification of goods – ascertaining applicability of the Rate Notification – Parts of ink / ball point pen – Whether tips and ball, both being pen parts under HSN Chapter Head 9608, used in manufacturing process of ball point pens, are taxable at the rate of 12%; b) If the tips and balls used in the manufacturing of ball point pens are not taxable at the rate of 12% under HSN 9608, then at what rate shall they be taxable and under which HSN?
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Held that:- Since, “tips and balls of pens” are definitively not considered as part of “Pen holders, pencil holders and similar holders” they are to be classified under 9608 99 90: Others, under HSN 9608 and are to be taxed accordingly.
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In the Rate Notification ball point pens, classified under HSN 9608, are included under Sl No. 232 of Schedule II under the description: “pens other than fountain pens, stylograph pens”. The same Notification also mentions “fountai
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ithin a period of thirty days from the date of communication of this Ruling, or within such further time as mentioned in the proviso to Section 100 (2) of the GST Act. Every such Appeal shall be filed in accordance with Section 100 (3) of the GST Act and the Rules prescribed there under, and the Regulations prescribed by the West Bengal Authority for Advance Ruling Regulations, 2018. 1. Admissibility of the Application 1.1. The Applicant is stated to be in the business of manufacturing and supplying of ball point pens, for which pen tips and balls to be used inside the tips are required in order to make the same tips working, and also trades and supplies ball point pen tips and refills to various dealers. The Applicant seeks a Ruling on a) Whether tips and ball, both being pen parts under HSN Chapter Head 9608, used in manufacturing process of ball point pens, are taxable at the rate of 12%; b) If the tips and balls used in the manufacturing of ball point pens are not taxable at the ra
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ule to the Customs Tariff Act, 1975 (hereinafter called the Tariff Act). For the purpose of interpreting the Rate Notification, so far as may be, the Rules of Interpretation, Section and Chapter Notes and the General Explanatory Notes to the Tariff Act may be applied. 1.3 The questions raised by the Applicant involve classification for the purpose of ascertaining applicability of the Rate Notification. The questions are, therefore, admissible for advance ruling under section 97 (a) & (b) of the GST Act. 1.4. The Applicant states that the questions raised in the Application have neither been decided by nor is pending before any authority under any provision of the GST Act. 1.5. The officer concerned has raised no objection to the admission of the Application. 1.6. The Application is, therefore, admitted. 2. Submissions of the Applicant 2.1. In the Application dated 17.01.2019 the Applicant has sought a ruling on ball point pen balls and Tips , but during Hearing and in both, the ora
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4. Observation & Findings of the Authority 4.1. A Nib is the part of a quill, dip pen, fountain pen, or stylus which comes into contact with the writing surface in order to deposit ink. The anatomy of a pen nib is very different from the anatomy of a pen tip. An essential feature of a pen nib is a slit from the extreme point to the centre to enable smooth flow of ink. This is why users are often cautioned not to lend or borrow fountain pens as the nib "wears in" at an angle unique to each individual person. A different user is likely to find that a worn-in nib does not write satisfactorily in their hand and, furthermore, creates a second wear surface, ruining the nib for the original user. 4.2. A ballpoint pen, on the other hand, is a pen that dispenses ink (usually in paste form) over a metal ball at its point, i.e. over a "ball point". The ink is placed in a thin tube whose end was blocked by a tiny ball, held so that it cannot slip into the tube or fall out
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of a Tip . The two terms cannot be used synonymously and/or as substitutes of each other. 4.6. Based on the terminology stated in the Application, as well as on examination of the samples provided by the Applicant, the Authority satisfies itself that the product on which Ruling has been sought is pen balls and tips and takes up the matter of classification and applicability of the Rate Notification, as amended, as applicable. 4.7. The Rules For Interpretation of the Tariff Act clearly states in General Explanatory Notes 1 that Where in column (2) of this Schedule, the description of an article or group of articles under a heading is preceded by – , the said article or group of articles shall be taken to be a sub-classification of the article or group of articles covered by the said heading. Where, however, the description of an article or group of articles is preceded by – , the said article or group of articles shall be taken to be a sub-classification of the immediately preceding des
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g caps and clips) of the foregoing articles, other than those of heading 9609 . 4.10. Chapter Heading 9609 includes Pencils (other than pencils of heading 9608), crayons, pencil leads, pastels, drawing charcoals, writing or drawing chalks and tailors chalks and are clearly out of the purview of the present discussion. 4.11. The – of Chapter 9608 states 9608 10 – Ball point pens 9608 20 – Felt tipped and other porous-tipped pens and markers 9608 30 – Fountain pens, stylograph pens and other pens: 9608 40 – Propelling or sliding pencils 9608 50 – Sets of articles from two or more of the foregoing sub-headings 9608 60 – Refills for ball point pens, comprising the ball point and ink-reservoir – Other 4.12. Since the Applicant seeks ruling on classification of tips and ball of pens , essentially parts of refills, it is clear that the same cannot be classified either as Ball point pens (960810) or Felt tipped and other porous-tipped pens and markers (960820) or Fountain pens, stylograph pens
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. 232 of Schedule II under the description: pens other than fountain pens, stylograph pens . The same Notification also mentions fountain pens, stylograph pens under Sl No. 447 of Schedule III. However, parts of pen, including tips and balls of pens , classifiable under HSN 9608 as discussed above, are not exempted or specifically included under entries of any other schedules. They are, therefore, to be included under Sl No. 453 of Schedule III and taxable @ 9% CGST and 9% SGST. In view of the foregoing, we rule as under. RULING Tips and Balls of Ball Point Pens are to be classified under GST Tariff Heading 9608 99 90 and included under Sl No. 453 of Schedule III of Notification No. 01/2017-Central Tax (Rate) dated 28.06.2017 (corresponding State Notification No. 1125-FT dated 28/06/2017). This Ruling is valid subject to the provisions under Section 103(2) until and unless declared void under Section 104(1) of the GST Act. – Case laws – Decisions – Judgements – Orders – Tax Managemen
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