My query is related to the classification of Balloons used during the birthday celebration or any party functions. It is seen that NCTC vide its alert suggested classification in 9503 whereas some Advance Ruling authorities have classified this product under 9505. My query is:
(i) In the case of dispute between these two formations, which classifications is more suitable and have more legal backing?
(ii) What is the legal authority of NCTC while deciding classification? What are the legal provisions governing the classification decided by the NCTC?
Pl comments with specific rules and relevant laws.
Debate on Balloon Classification: Toys or Celebration Items? Disagreement Between NCTC and Advance Ruling Authorities on Headings 9503, 9505. A discussion on the classification of balloons used for celebrations highlights differing opinions between the National Classification and Tariff Committee (NCTC) and Advance Ruling authorities, with classifications under headings 9503 and 9505. One participant notes that classification should follow Customs tariff guidelines, and Advance Rulings are binding only on the applicant. Another cites a 1994 Board clarification suggesting balloons be classified under 9503 as toys, based on their end use. The Supreme Court ruling in Poulose and Mathen Vs. CCE is referenced, emphasizing that in cases of classification disputes, the opinion favoring the assessee should prevail. (AI Summary)
TaxTMI 
TaxTMI 
TaxTMI 
