In Re : Shiva Writing Company Pvt. Ltd.
GST
2019 (3) TMI 705 – AUTHORITY FOR ADVANCE RULING – WEST BENGAL – 2019 (23) G. S. T. L. 435 (A. A. R. – GST), [2019] 67 G S.T.R. 61 (AAR)
AUTHORITY FOR ADVANCE RULING – WEST BENGAL – AAR
Dated:- 13-3-2019
Case No. 01 of 2019 Order No. 44/WBAAR/2018-19
GST
Shri Sydney D'Silva, Joint Commissioner, CGST & CX and Shri Parthasarathi Dey, Senior Joint Commissioner, SGST
Applicant's representative heard : Shri Akshat Agarwal, Authorized Representative
Preamble
A person within the ambit of Section 100 (1) of the Central Goods and Services Act, 2017 or West Bengal Goods and Services Act, 2017 (hereinafter collectively called 'the GST Act'), if aggrieved by this Ruling, may appeal against it before the West Bengal Appellate Authority for Advance Ruling, constituted under Section 99 of the West Bengal Goods and Services Act, 2017, within a period of thirty days from the date of communication of this Ruling, or within such further
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tion 97(2) (a) & (b) of the GST Act empower this Authority to pronounce a ruling on the classification of any goods or on the applicability of a notification issued under the GST Act. Classification refers to determination of the nature and character of the goods being supplied. The purpose of the exercise is to ascertain the applicability of any entry of the notifications issued under the GST Act, specifying the rate of tax or exemption from payment of tax [Rate of tax on supply of goods is specified under Notification No. 1/2017-CT (Rate) dated 28/06/2017 of the Centre and Notification No. 1125-FT dated 28/06/2017 of the State, as amended from time to time, and hereinafter collectively called the Rate Notification]. Explanation to the Rate Notification clearly mentions that Tariff item, sub-heading, heading and Chapter in the Rate Notification refer to those specified in the First Schedule to the Customs Tariff Act, 1975 (hereinafter called the Tariff Act). For the purpose of interpr
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and “Nibs”. It appears that the Applicant is using the words “Tip” and “Nib” interchangeably, and to clear the confusion the Authority then asked the Applicant to submit samples of the products on which the Ruling has been sought for. Samples were submitted during Final Hearing.
3. Submissions of the Revenue
3.1. The “Ball Point Pens” are classified under Sub-heading no. 960810 of GST Tariff, attracting CGST @6% and SGST @ 6%, while “Refills for ball point pens, comprising the ball point and ink-reservoir” are classified under Sub-heading no. 960860 of GST Tariff attracting CGST @ 9% and SGST @ 9%. Tips and balls are the parts of refill, and since there is no specific subheading allotted to these parts these may be classified under residuary sub-heading as 'others' in 960899 specifically under Tariff item Sub-heading no. 96089990 of GST Tariff, which attracts GST at a rate of 18% (CGST 9% and SGST 9%).
4. Observation & Findings of the Authority
4.1. A “Nib” is the part of a quill,
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t be used to write upsidedown.
4.3. Standard components of a ballpoint “Tip” include the freely rotating ball itself (distributing the ink on the writing surface), a socket holding the ball in place, small ink channels that provide ink to the ball through the socket, and a self-contained ink reservoir supplying ink to the ball. 4.4. So it is evident, that though often used interchangeably by the Applicant, the two words (nib and tip) refer to two different genres and styles of pen in which they are used, with distinctly different ways of channelling the ink.
4.5. As is clear from the discussion above, “Nibs” and “Tips” of pens are completely two different products with distinguishable anatomy catering to different kinds of ink and hence, use. While the split down the centre is the essential and salient feature of a “Nib”, the ball at the end of the refill is the essential and salient feature of a “Tip”. The two terms cannot be used synonymously and/or as substitutes of each other.
4
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n article or group of articles is preceded by “” or “-“, the said article or group of articles shall be taken to be a sub classification of the immediately preceding description of the article or group of articles which has “-” or “”.”
4.8. In other words, descriptions under “-” (single dash) are first to be considered for sub-classification under a Heading first, before proceeding to further classify under “” (double dash). Articles whose description are preceded by a “” (triple dash) or “-” (quadruple dash) are sub classifications of the immediately preceding single dash or double dash, as the case may be.
4.9. Chapter Heading 9608 includes “Ball point pens; felt tipped and other porous tipped pens and markers; fountain pens; stylograph pens and other pens; duplicating stylos; propelling or sliding pencils; pen holders, pencil holders and similar holders; parts (including caps and clips) of the foregoing articles, other than those of heading 9609”.
4.10. Chapter Heading 9609
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ns and other pens (960830) or Propelling or sliding pencils(960840) or Sets of articles from two or more of the foregoing sub-headings (960850) or Refills for ball point pens, comprising the ball point and ink-reservoir (960860).
4.13. Hence, it has to be classified under “-Other”, which includes:
9608 91: Pen nibs and nib points
9608 99: Other
4.14. Since, nibs and nib points are not similar to tips and the Applicant is in the business of manufacturing “ball-point pens” and not “fountain pens”, the classification of “tips and balls for pen” should fall under 9609 99: Other, which includes
9608 99 10: Pen holders, pencil holders and similar holders
9608 99 90: Others
4.15. 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.
4.16. In the Rate Notification ball point pens, classified under HSN 9608, are inc
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