TaxTMI 
TaxTMI 
2020 (9) TMI 547
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....aterial under HS Code 3923 (Caps & closure). But after implementation of GST, they were asked to clear the goods under HSN 3926 (Other articles of Plastics) bearing GST of 28%. The applicant further submitted that they were not certain about HSN of the said imported goods and other competitors were supplying same product under HSN 8424 and 9616. So, it leads to confusion and, hence, they applied for Advance Ruling on the classification of the imported goods. 4. The applicant submitted that they are dealing in the following items and their utility are given below: I. Lotion Pump (HS Code 84242000): This type of pump is hand operated mechanical appliances for dispensing liquid or gel lifted through a plastic pipe goes inside the bottle. In this type of Pump Liquid dispense from Bottle through actuator by pressing piston by finger up and down, which is mechanical in Nature. This pump cannot be used without bottle and is packaging item. a) Material used: Poly Propylene, LDPE, Glass Ball and SS Spring. b) Usage: On Bottle of Hand Disinfectant, Hand Sanitizer Gel, Hand Wash Soap (Dettol Hand Wash), Tomato Soap Dispenser etc. This product can be used for mult....
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....ropylene, LDPE, Glass Ball and SS Spring. b) Usage: On Bottle of Glass cleaner, Car Cleaner, Air Freshener, Pesticides, Pharmaceutical Sprays etc.. This product can be used for multiple usages and is not related to a specific purpose. 5. Accordingly, the applicant sought Advance Ruling on the following question: What is the HSN code and rate of tax for Plastic Mechanical Liquid Dispenser? Applicant's Interpretation of Law/Taxation under GST Regime: 6. The applicant submission regarding the classification of the different type of Dispenser, Pumps, Sprayers, made of plastic, is as under: 6.1 The Chapter / Headings relevant to the classification of the subject goods are Chapter 84and 96 of the Custom Tariff read with HSN. Chapter 84 covers Machinery and Mechanical appliances: parts thereof. Tariff item No. 8413 covers PUMPS FOR LIQUIDS, WHETHER OR NOT FITTED WITH A MEASURING DEVICE; Tariff Item 8424 covers MECHANICAL APPLIANCES (WHETHER OR NOT HAND OPERATED) FOR PROJECTING, DISPERSING OR SPRAYING LIQUIDS OR POWDERS; FIRE EXTINGUISHERS, WHETHER OR NOT CHARGED; SPRAY GUNS AND SIMILAR APPLIANCES; STEAM OR SAND BLASTING MACHINES AND SIMILAR JET PROJECTING ....
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....eading 9616.10 ibid upheld - Section 108 of Customs Act. - Perfumes and toilet waters were covered under heading 33.03 while scent sprays and similar toilet sprays were covered under heading 96.16 [para 3]. Valuation (Customs) - Loading of value, evidence - No cogent reason given by Commissioner (Appeals) for loading the value of goods to the extent of 160%/100% - Commissioner (Appeals) merely affirmed the statement made by lower authority - Valuation aspect to be considered afresh by Commissioner (Appeals), following principles of natural justice and pass speaking order - Remanded to lower appellate authority - Section 14 of Customs Act, 1962. [para 4] 3. On going through the records, we find that the appellant has disputed both the classification and valuation. According to them, the goods are classifiable under CTH 3303.00 and not under CTH 9616.10. In the memorandum of appeal, they undertook to explain their case with brochures, invoices, pamphlets, previous bills of entries, etc. at the time of hearing. Today, the appellant is not present nor is any such brochure, invoice, pamphlet, bill of entry available on record. It appears from the available materials on....
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....ill not rule out classification under Chapter heading 9616. The Commissioner has noted that explanatory notes under heading 8424 does not include scent sprays and similar toilet sprays. He also found that the goods were not having technical characteristics for use as scent or similar sprays. In the above said circumstances the learned Commissioner ought to have taken a view that 9616 would be more appropriate because the goods are not included by the notes under Chapter 8424 and these are not technical parameters in the notes for the goods to fall under 9616, therefore, the impugned order is liable to be set aside. As we find merits in Revenue appeal, the same is allowed." iii) COLLECTOR OF C. EX., BANGALORE Vs. DYNAMATIC HYDRAULICS LTD. reported in ELT 1999 (109) E.L.T. 927 (Tribunal) Pump - Dynamatic hand pump - Distinct from hydraulic accumulator - Classifiable under specific Heading 84.13 of Central Excise Tariff Act, 1985. It has been explained that Heading 84.13 covers pumps for liquids, whether or not fitted with a measuring device; liquid elevators. It is stated that all pumps for liquid and liquid elevators fall under this heading. Hand pump is unambig....
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....Similar view has been held in the following cases also: (a) PROCESS PUMPS INDIA PVT. LTD. Versus COMMISSIONER OF C. EX., BANGALORE-II reported in ELT 2005 (190) E.L.T. 235 (Tri. - Bang.) "Pumps for liquids classifiable under Heading 84.13 of Central Excise Tariff which carries nil rate of duty - Question of granting or denying benefit of Notification No. 38/97-C.E. does not arise. [para 3] Pump parts-Spares used as parts of pumps, classifiable under Heading 84.13 of Central Excise Tariff and not under Chapter 73 or Chapter 40 ibid. [para 3]." (b) PAVRON SPRAYTECH PVT. LTD. Versus COMMISSIONER OF CUSTOMS, CHENNAI reported in COMMISSIONER OF CUSTOMS, CHENNAI "Pumps - Spray pumps - 32 MS Modular spray pumps being in the nature of pump, not classifiable under Heading 96.16 of Customs Tariff Act, 1975 which is a specific entry for scent sprays - Subsequent to the present import, goods were being classified by the authorities themselves under Sub-heading 8413.20 ibid as claimed by appellants - Lower authorities directed to consider the classification issue afresh in order to determine whether sub-heading 84.13 or 84.24 ibid would be more appropriate. [par....
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....mes of liquids (including molten metal and wet concrete), whether they are operated by hand or by any kind of power unit, integral or otherwise". Heading 8413 describes pumps that are larger and used in an industrial or similar activity. A primary characteristic of these pumps is that they are used for continuously displacing volumes of liquid. The pumps in question here are not of the same class or kind as the pumps for liquid described in heading 8413. Being so this product will not fall under Tariff heading 8413. The pumps are solely used to disburse liquid/gel products. The disbursing by the pumps is not a "spray" within the common meaning of the term. It is not scent sprays or similar toilet sprays described by the Tariff heading 9616. The pumps project and disburse liquid, gel cream as the case may be. Such a projection or dispensation is more appropriately covered by the terms of heading 8424 (This view also takes support from ruling in the case of CLA-2 CO: R:C:M 088500 JMH dated 04.04.1991 in the case of SCAC Transport (USA), Inc. NY 11430). Considering the aforesaid provision of the HSN and Custom Tariff, the appropriate classification of this item appears to be und....
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....ubmitted that Foam pumps are solely used to disburse liquid, majorly in pharma products. The disbursing by pump is not a "spray" within the common meaning of the term. It is not scent sprays are similar toilet sprays described by the Tariff heading 9616. The pumps project and disburse liquid, gel, cream as the case may be. Such a projection or dispensation is more appropriately covered by the term of heading 8424. (This view also takes support from ruling in the case of CLA-2 CO: R:C:M 088500 JMH dated 04.04.1991 in the case of SCAC Transport (USA), Inc. NY 11430). IV. Cream Pump: As stated above at Sr. No. 1, the function and use of the above pump is for pumping/ dispensing liquid or lotion from, as such, in terms of the above provisions of the HSN and Customs Tariff, the appropriate classification appears to be 8424 as heading No. 8424 covers "machine and appliances for projecting, dispersing or spraying steam, liquids or solid materials (e.g. sand, powder, granules, grit or metallic abrasive) in the form of a jet, a dispersion (whether or not in drips) or a spray". They further submitted that this type of Cream pump is solely used to disburse liquid, serum (semi liquid)....
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....e head (with its spray forming mechanism) and a premature pressure bulbs) or a piston drive. As described above, head should be of Spray Forming Mechanism and as per the Oxford Dictionary, word Spray means "Liquide that is blown or driven through the air in the form of tiny drops". As they have imported "Lotion Pump", whose main function is to dispense liquid out of reservoir through dip tube by applying thumb pressure. The head (Actuator) does not have any mechanism to spray liquid. Actuator is just guiding liquid to desired direction (Hand or any utensil). Hence, they feel that Head of Lotion pump cannot be termed as Heads of Toilet Spray. II. Lotion Pump are designed to dispense (Not Spray), semi solid material like gel and emulsions. Though, it can dispense aqueous liquid but will not spray. III. Heads of Toilet Spray: HS Code 9616 covers Heads of Toilet Spray. Oxford Dictionary word "Toilet" describes as "objects and substances that you use in washing yourself and preventing the body from smelling unpleasant." In their opinion products like Perfume, Scent, After Shave Lotion, Deodorants are basically made of fragrance and alcohol and either it ....
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....Y N003133 dated 8th December, 2006 for Trigger Sprayers and Liquid Soap Dispensers from China; (iv) American Customs Ruing No. NY M83453 dated 6th June, 2006 for Lotion Dispensers from China; (v) American Customs Ruing No. NY 894786 dated 22nd February, 1994 for Sprayers and Dispensers from Germany; (vi) American Customs Ruing No. NCLA-2 Co:R:C:M088500 JMH dated 4th April, 1991. This is very exhausting ruling on Cosmetic Pump, wherein it has been examined thoroughly for Cosmetic Pump under HS Code 8413, 8424 & 9616; (vii) Invoice copy of National Plastics, a Local Manufacturer is manufacturing and supplying Plastic Dispensers like Lotion Pump, Trigger Sprayers and Find Mist Sprayers under description "Pumps and Sprayers" under HS Code 8424.2000; (viii) Certificate of Origin Received from China for concern consignment. In all above rulings, only Dispenser Pumps are imported without bottle and, hence, it has been classified under 8424. IX. For reference, they have attached Advance Ruling given by US Customs department as mentioned above and Screenshot of Oxford Dictionary for meaning of word Toilet and Spray, which is self-expl....
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....fication of the imported goods. 15. We note that the classification of goods under GST regime has to be done in accordance with the Customs Tariff Act, 1975, which is in turn based on Harmonised System of Nomenclature popularly known as 'HSN'. The rules of interpretation, section notes and chapter notes as specified under the Customs Tariff Act, 1975 are also applicable for classification of Goods under GST regime. However, once an item is classified in accordance with the Customs Tariff Act, 1975, the rate of tax applicable would be arrived at on the basis of notifications issued under GST by respective governments. 16. Now, we come to the classification of said plastic devices, which are being imported from China by the applicant- whether it should be classified as parts of scent spray falling under CTH 9616.10 or as parts of an appliance falling under CTH 8424.90 i.e. as parts of an appliance other than agriculture or horticulture classifiable under CTH 8424.89 or Chapter heading (HSN) 3926 (Other articles of Plastics). CHAPTER HEADING 9616: 17. The applicant submitted that the imported pumps/sprayers are solely used to disburse liquid/gel products. The disbursing by....
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....d items in question are parts of general use of plastics (chapter 39) and, hence, these cannot be construed as parts for the appliances and machineries of chapter heading 8424. Accordingly, these plastic devices do not merit classification under Chapter Heading 8414.90. Chapter heading (HSN) 3926 (Other articles of Plastics) 19. We find that Chapter Heading 3926 deals with "Other articles of plastics and articles of other materials of heading 39.01 to 39.14". Further, as per HSN, Chapter sub-heading 3926.90- "Others" covers "articles, not elsewhere specified or included, of plastics (as defined in Note 1 to the Chapter) or other materials of heading 39.01 to 39.14". As mentioned in foregoing paras that the applicant is importing the plastic devices intended to be screwed/fitted on the bottle/containers. These plastic devices are used for pumping/ dispensing liquid or lotion from a bottle and serves for the depletion of the contents, viz. liquid, gel, cream etc.. Thus, these are generic goods of plastics. These are not elsewhere specified or included in Customs Tariff and, hence, we conclude that the plastic items in question are correctly classifiable under Chapter sub-hea....