TaxTMI 
TaxTMI 
2020 (4) TMI 632
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....e only. 3.3 The applicant vide letter dated 12.09.2018 submitted that their product, printing ink and medium is used only for printing purpose and they are selling it to printers only. 3.3.1 Varnish on the other hand is defined as a fluid or solution which on application in thin layers by brush or otherwise, dry within a short period by evaporation leaving a film of smooth shiny, elastic oil and resin, resistant to its surrounding atmospheric conditions. 3.3.2 In Akhtar Akbar vs. Assistant Collector, Central Excise, the High Court of Madhya Pradesh noted in paragraph 17 that in taxing statutes, which have to be construed strictly, it is the natural meaning of the word which must be adhered to. In the absence of any indication in the statute itself, it will not be reasonable to restrict or expand that meaning only because a commodity clearly falling within its ambit is, for certain purposes, given another name in commerce. In this decision, it referred to several dictionary meanings of the term 'varnish' which was predominantly described as a colorless, viscous liquid coated over surfaces to lend a lustrous effect to the surface on which it is applied. The Hon'ble High Court emph....
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....ty @12.5%; Thus, though all the three items are classified under different Chapter Heading, they attract uniform rate of duty; (iv) In GST Regime, M/s. Flint Group, in GSTR-3B, as per GST REG26 "details of goods supplied by the business", the following are available under Description of goods Column: Sr.No Description of goods HSN Code 1. Printing ink, writing ink or drawing ink and other inks, whether or not concentrated or solid - printing ink - black, other 32151190 2. Printing ink, writing ink or drawing ink and other inks, whether or not concentrated or solid - printing ink - Other, other 32151190 3. Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter - based on Acrylic or Vinyl polymers - other 32082090 4. Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium; solutions as defined in Note 4 to this Chapter - based on Cellulose nitrate or other Cellulose derivatives, nitrocellu....
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...."Technical varnish" / "medium" and "printing ink" in the same HSN is not correct. Discussion & findings: 5. We have considered the submissions made by the applicant in their application for advance ruling and additional submissions made vide letter dated 12.09.2018 as well as submissions made at the time of personal hearing held on 14.06.2018. We have also considered the information and views submitted by the Central Goods and Service Tax Commissionerate, Vadodara-II. 6. The issue involved in this case is regarding classification of "Technical Varnish" and "Medium" being used in printing industry. As submitted by the applicant Ingredients of Printing ink is Solvent, Resin and various colours. The solvent, i.e. liquid organic compound (Tolune, Methyl Ethyl Ketone etc.,) is a clear, colourless liquid; this is transferred through pipes and at a certain temperature resin is added to this solvent; resin is a binding material which is also a polymer product; this mixture after undergoing heating and cooling processes, is called as Technical Varnish; Colouring material, is added to this mixture, and after undergoing certain processes, the final product i.e. Printing ink / Packaging in....
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....on. Accordingly, for resolving any dispute relating to tariff classification, a safe guide is the internationally accepted nomenclature emerging from the Harmonious System of Nomenclature (HSN). Although, the decision in the case of Woodcraft Products (supra) dealt with the interpretation of the provisions of the Central Excise Tariff there can be no doubt that the HSN Explanatory Notes are a dependable guide even while interpreting the Customs Tariff." 10.1 The Tariff Heading No. 3208 reads as follows:- "Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium; solutions as defined in note 4 to this chapter" 10.2 The Explanatory Notes for 'Paints and varnishes (including enamels and lacquers) based on synthetic polymers or chemically modified natural polymers, dispersed or dissolved in a non-aqueous medium; solutions as defined in note 4 to this chapter"' under Tariff Heading 3208 of the Harmonised System of Nomenclature, inter-alia, provides as follows:- "(A) PAINTS (INCLUDING ENAMELS) -------------------. (B) VARNISHES (INCLUDING LACQUERS) Varnishes and la....
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....or the manufacture of products specified in headings 39.01 to 39.13, such as anti-skinning agents and certain thixotropic or drying agents, which make them suitable for use solely as varnishes. The heading also excludes: (a) -------------- etc. (heading 32.14). (b) Printing inks which though having a similar qualitative composition to paint, are not suitable for painting applications (heading 32.15). (c) --------------- described in Explanatory Note to heading 33.04. (d) ----------------- (heading 38.24). (e) --------------- (heading 39.12)." 10.3 Thus, it is evident that the Explanatory Notes for Tariff Heading 3208 includes "Varnishes" but excludes 'Printing inks' which though having a similar qualitative composition to paint, are not suitable for painting applications (heading 32.15). 10.4 It is also observed that in the First Schedule to the Customs Tariff Act, 1975, "Varnishes": based on polyesters are mentioned against Tariff Item 3208 10 30. "Varnishes": based on acrylic or vinyl polymers are mentioned against Tariff Item 3208 20 30 and Varnishes: others are mentioned against Tariff Items 3208 90 41/ 3208 90 49, all under Tariff Heading no. 3208. Therefore, 'Te....