TaxTMI 
TaxTMI 
TaxTMI 
2024 (6) TMI 852
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....ng the same under HSN 960899990 of the First Schedule of Customs Tariff Act, 1975, chargeable to Basic Customs Duty @5% under Notification 50/2017-Cus dated 30.06.2017. To similar effect, 13 Bills of Entry were filed by the appellant declaring the items as aforesaid. For the purpose of IGST, the appellant claimed benefit of Sl. No.232 of Notification 01/2017- Cus dated 28.06.2017. As per the Sl. No. 232 of the Schedule II of the Notification 01/2017, the appellant claimed IGST @12% for the goods imported. On examination of the goods imported by the appellant, the officers opined that the items imported are liable to pay IGST @18% as per Sl. No.453 of the Schedule III of the Notification 01/2017. 2.1 Show Cause Notices dated 08.04.2019 and 20.01.2020 were issued to the appellant alleging that tips and balls are parts of refill and since there is no specific subheading allotted to these parts, they are classifiable under the residuary heading as 'others' in 960899, specifically under the sub-heading 96089990 of the Customs Tariff Act. The Notices rejected applicability of IGST @12% under Sl. No.232 of Schedule II of the Notification 01/2017 and propose to re-assess the same ....
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....608, all sorts of Pens including Ball Point Pens and the Parts of such Pen are covered under Heading 9608. 4.3. The Appellant referred to clarification issued by CBIC (TRU) vide Circular No. 113/32/2019- GST dated October 11, 2019 ("Circular No. 113") regarding applicability of GST on the parts and accessories suitable for use solely or principally with a medical device. By the said Circular No. 113, it was clarified that same rate of GST would be applicable on the parts and accessories suitable for use solely or principally with a medical device as the rate of GST on the medical device and such parts would not be classified under residuary entry. 4.4. They further cited Circular No. 155/11/2021- GST dated June 17, 2021 ("Circular No. 155") which clarified the GST rate on laterals and parts of Sprinklers or Drip Irrigation System; they claim that paragraph 3 of Circular No. 155 makes it abundantly clear that parts, if not specifically mentioned in the GST rate schedule, shall attract the GST as applicable to the respective heading wherein they are classifiable on the basis of Heading Description, Section Notes, Chapter Notes etc. 4.5. The appellant also contends that as per Chap....
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....ries in the tariff schedule, the rates have been prescribed at 6- digit (sub-heading) or 8-digit (tariff line) level. If the intention of the IGST Goods Rate Notification was to cover only ball point pens and not their parts then the entry could have been "960810" (Ball point pens) at Serial No. 232 of Schedule II of the IGST Goods Rate Notification instead of "9608" which covers all the items under HSN 9608 except otherwise specifically excluded. Thus, it is evident that the intention of the GST Council was to cover the entire heading 9608 (other than Fountain pens, stylograph pens) at Serial No. 232 of Schedule II of the IGST Goods Rate Notification. 5.1. The appellant referred to the Compliance Portal launched by CBIC and contended that on the Compliance Information Portal, there is no option to classify goods of HSN 96089990 under the residuary entry S.No. 453 of Schedule III of the IGST Rate Notification 001/2017.Apparently, even as per CBIC, the goods classifiable under HSN 96089990 are covered by the specific entries for Heading 9608 and as such the impugned goods are not covered by residual entry 453 of Schedule III. 5.2. The appellant submits that the present issue regar....
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....e goods imported by them under the Heading 9608 of the First Schedule to the Customs Tariff Act, which reads as under: "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" (emphasis supplied) 8.3. As per Chapter Note 1(d) of Chapter 96 of the First Schedule to the Customs Tariff Act, this Chapter does not cover parts of general use, as defined in Note 2 of Section XV, of base metal (Section XV), or similar goods of plastics (Chapter 39). As such, all identifiable parts of items (falling under Chapter 96), which are not of general use, shall be classified with the main item under same tariff heading. We observe that the classification of the impugned goods as 'parts of ball point pens' under heading 9608 has been accepted by the department. The examination report of the impugned goods states that the goods were "found to be 'tips' i.e. parts of ball point pen as declared in bill of entry". 8.4. When the goods are ....
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....ding/ Subheading/ Tari ff Item Description of Goods CGST Rate 195 B 8424 Sprinklers; drip irrigation systems including laterals; mechanical sprayer 6% 3. The matter is examined. The intention of this entry has been to cover laterals (pipes to be used solely with with sprinklers/drip irrigation system) and such parts that are suitable for use solely or principally with 'sprinklers or drip irrigation system', as classifiable under heading 8424 as per Note 2 (b) to Section XVI to the HSN. Hence, laterals/parts to be used solely or principally with sprinklers or drip irrigation system, which are classifiable under heading 8424, would attract a GST of 12%, even if supplied separately. However, any part of general use, which gets classified in a heading other than 8424, in terms of Section Note and Chapter Notes to HSN, shall attract GST as applicable to the respective heading." (emphasis supplied) 8.7.1 Paragraph 3 of Circular No. 155/11/2021-GST (supra) makes it abundantly clear that parts, if not specifically mentioned in the GST rate schedule, shall attract the GST as applicable to the respective heading wherein they are classifiable on the basis of Heading Description, Se....
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.... the classification of parts. The guiding principles are that where certain parts are suitable for use solely and principally with the particular kind of machine, such parts would deserve to classify along with that particular machine and parts of general purpose would be classifiable as per their parent heading. It appears to us that although other Sections do not contain similar directions, the application of this note could be made to the goods covered under chapters falling under other Sections also. Section XVI refers to note 2 of section XV. Section XV covers articles of base metals which phrase would apply to ferrules before us. The phrase 'parts of general use' also occurs in section XVII note 2(b). Chapter XIX vide note 1(b) also refers to parts of general use excluding them from the coverage of that chapter. There are certain other chapters also with similar provisions. The conclusion to be drawn from the coverage of the chapter is where the parts are not of general use but the parts are designed solely for use in a particular article covered under that chapter, then that part would merit classification under that heading which covers the article in which it is us....